Teaching Of Economics

Economic Models
Economic Models are essentially expected end results with given constraints. An example is the law of demand states that a price fall will lead to an increase in quantity demanded for a good – thus a negative correlation between Price and Quantity demanded.

Assumptions
Students are expected to appreciate the importance of assumptions that are made in the various economic models. In microeconomics, the consumer is assumed as “rational”.

Diagrams
The learning of diagrams helps in communicating economic ideas – basic diagrams are drawn in two axis.

Short run and Long run
In microeconomics, students are introduced to the concept of short run and long run.

Equilibrium
The importance of equilibrium is that you can lead on to the concept that the world is dynamic.

Applications
In teaching economics, it is important to complement your teaching with real-world examples. These examples can be found in newspapers and online news websites.

Problem-Solving
Ask your students about how they can use economic theory to solve macroeconomic problems like inflation and unemployment.

Trade-Offs
One basic theme of economics is the idea of trade-offs. This appears in the production possibility curve and the policies solving inflation and unemployment. Thus the student has to understand that the solution to a problem may lead to the creation of another problem.