Children construct meaning from their economic experiences in the form of naive theories and use these theories to explain the relationships between their actions and the outcomes. Inevitably, due to their lack of economic literacy, these theories will be incomplete. Through curriculum design that acknowledges and addresses these naive theories,…

The Edgeworth exchange diagram is a traditional tool of undergraduate microeconomic theory that depicts the mutually beneficial gains from voluntary trade. The authors take the analysis one step further. They identify the buyer's and seller's surpluses that accrue to both trading parties in the Edgeworth diagram. This is a straightforward exercise…

James Duesenberry's (1949) relative income hypothesis holds substantial empirical credibility, as well as a rich set of implications. Although present in the pages of leading economics journals, the hypothesis has become all but foreign to the blackboards of economics classrooms. To help reintegrate the concept into the undergraduate economics…

A classic article by Gary Becker (1965) showed that when it takes time to consume, the first order conditions for optimal consumption require the marginal rate of substitution between any two goods to equal their relative full costs. These include the direct money price and the money value of the time needed to consume each good. This important…

The author derives the probability that price discrimination improves social welfare, using a simple model of third-degree price discrimination assuming two independent linear demands. The probability that price discrimination raises social welfare increases as the preferences or incomes of consumer groups become more heterogeneous. He derives the…

Presents a diagram for figuring the value of time into an individual's labor-supply decisions and the time intensiveness of the individual's consumption patterns. Seeks to make the integration of differing time values with leisure income choices more understandable for students. (DK)

The papers in this publication will help elementary and secondary educators integrate economic concepts and tools into consumer education courses. Responses to the papers are also included. There are eight chapters. Chapter one describes the project that is the subject of this publication and that resulted in the national seminar. The goal of the…

A concise framework of basic concepts and generalizations for teaching economics for K-12 students is presented. The guide summarizes the basic structure and substance of economics and lists and describes economic concepts. Standard guidelines are provided to help school systems integrate economics into their on-going courses of study. Designed to…