Explains why an econometric practice introduced by J.C. Soper cannot eliminate the problems caused by multicollinearity. The author suggests that it can be a useful technique in that it forces researchers to pay more attention to the specifications of their models. (AM)

Attempts to clarify the concepts of, and the link between, fixed costs and sunk costs. Argues that the root of confusion is the inconsistency in defining the term fixed costs. Consistently defines fixed and sunk costs, and describes how instructors must teach under these definitions. (RLH)

Investigated high school students' levels of economic understanding using the Test of Economic Literacy. Students' scores were analyzed and compared to national averages. The subjects students understood best were currency exchange, competition, and types of economic systems. The subjects they understood least were market failures, inflation, and…

Search-theoretic models of monetary exchange are based on explicit descriptions of the frictions that make money essential. However, tractable versions of these models typically make strong assumptions that render them ill suited for monetary policy analysis. We propose a new framework, based on explicit micro foundations, within which macro…

The American Economists Association's (AEA's) summer and minority scholarship program at Duke University is an academic pipeline program that has been in operation for 33 years. The eight-week summer experience prepares its participants for the rigors of first- and second-year study in master's and doctorate programs in economics. The program also…

The authors address two informal writing assignments implemented in introductory economics classes. One assignment involves students writing short reflection papers, and the other assignment involves students writing short journal entries for a designated period of time. Both assignments are designed to help students realize that economics is…

The authors outline an innovative activity that helps teachers make the abstract concepts of scarcity and allocation concrete in the K-12 classroom. Students evaluate the scarcity of chocolate and often determine, incorrectly, that the candy is not scarce because there is enough for each student to have one piece. After students reveal their…

The author outlines a classroom tariff-setting game that allows students to explore the consequences of import tariffs imposed by large countries (countries able to influence world prices). Groups of students represent countries, which are organized into trading pairs. Each group's objective is to maximize welfare by choosing an appropriate ad…

The use of computer-based automated assignment systems in economics has expanded significantly in recent years. The most widely used system is Aplia which was developed by Paul Romer in 2000. Aplia is a computer application designed to replace traditional paper-based assignments in economics. The main features of Aplia are: (1) interactive content…

This paper describes the method of assessing the outcomes of students' training in the Economics of Health Care course at the Albany College of Pharmacy (ACP). The following sections will: (1) describe the course and the various techniques that were used to ensure that the course outcomes were achieved, (2) explore the literature on assessment…

This study investigated the level of degree to which the home Economics teachers developed value internalization and commitment for the implementation of the National Junior Secondary School Home Economics Curriculum (NJSSHEC). It also determined the state and qualification influence on the level of degree of value internalization and commitment…

Quality of life (QoL) is increasingly becoming a concept researched empirically and theoretically in the field of economics. In urban economics in particular, this increasing interest stems mainly from the fact that QoL affects urban competitiveness and urban growth: research shows that when households and businesses decide where to locate, QoL…

The author advocates the application of experiential learning in economics courses at the tertiary level. The author evaluates a range of learning methods, both passive and active, in a student survey that provides data on undergraduate attitudes to various class activities. The results indicate a clear student preference for learning activities…

The author describes a teaching method that uses powerful contemporary media, movie and television clips, to demonstrate the enormous breadth and depth of economic concepts. Many different movie and television clips can be used to show the power of economic analysis. The author describes the scenes and the economic concepts within those scenes for…

The authors show how microeconomic concepts and principles are applicable to the study of terrorism. The utility maximization model provides insights into both terrorist resource allocation choices and government counterterrorism efforts, and basic game theory helps characterize the strategic interdependencies among terrorists and governments.…