Inflation uncertainty (experiment) A double-oral auction for borrowers and lenders where real payoffs will depend on inflation, which is uncertain at the time of trading. ... View more

Income redistribution (experiment) Students must decide how to allocate a pot of tax revenue. ... View more

The following are in-class problems that emphasize the power of compounding. These are ideal for small groups, and each problem utilizes real data. The first is a case study on one stock, Chipotle, and the second focuses on the catch-up effect. 1. Stock Market Returns over Time: The Case of Chipotle from 2009 to 2015 a) On March 18, 2009, you bought 100 shares of Chipotle stock (CMG) for $60 per share instead of a used car. On March 19, 2009, each share rose $6 to $66. What was the total value of your 100 shares on March 18 and on March 19? What was the one-day percentage gain? b) One year later, in March 2010, Chipotle stock was worth $110 per share. What was the total value of your 100 shares? What was the one-year percentage gain? c) In March 2015, each share of Chipotle stock was worth $630. What is the total value of your 100 shares? About how many times is your investment worth today compared to 6 years ago? Using the Rule of 70, what was the approximate average annual return on investment? d) On July 21, 2015, Chipotle Stock rose from $673 per share to $725 in one day. What was the one-day percentage increase? Based on the original $60 price in 2009, what percentage increase does this $52 rise represent? 2. Economic Growth: The Catch-Up Date for China and India’s GDP a) In 2015, U.S. GDP is approximately $18 trillion, and the economy is growing at a rate of about 3% per year. In what year will the U.S. economy double to $36 trillion? b) In 2015, China’s GDP is approximately $9 trillion, and their economy is growing at a rate of about 7% per year. In what year will China’s economy double to $18 trillion? In what year will it double again to $36 trillion? c) In 2015, India’s GDP is approximately $4.5 trillion, and their economy is growing at a rate of about 5% per year. In what year will India’s economy double to $9 trillion? In what year will it double again to $18 trillion? In what year will it double again to $36 trillion? d) In what year will each country’s GDP reach $72 trillion? ... View more

Gas policy (context-rich problem) Students must recommend a policy to reduce demand for oil. Can have students complete individually, with think-pair-share or small groups. In larger classes, student responses can be collected with clickers   ... View more

Functions of money (cooperative learning) Students analyze how specific items fulfill the functions of money and discuss their responses with peers. [money] Follow-up questions could be asked using clickers.   ... View more

Author:  Lori Alden Audience:  High school and college economics students Time required:  About 50 minutes Summary:  This game demonstrates the advantages of price allocation over other methods.  Students are told that a hurricane has caused a major power outage.  This increases the demand for ice, since homeowners want to use it to preserve food.  It also decreases the supply of ice, since many local ice producers won't be able to make ice without power.  This combination of an increase in demand and decrease in supply causes the equilibrium price of ice to go up.  In the first round of the game, however, the price of ice is frozen at the pre-hurricane level and allocated on a first-come, first-served basis.  In the second round, the ice is allocated by price, with no waiting.   Recommended reading:  Is a $10 Bag of Ice Illegal?  When it's price gouging, and when it's just really expensive.  By Brendan I. Koerner   Aug. 18, 2004 Resources: Between 15 and 38 students. 50 minutes of class time Fourteen pieces of candy (to represent the ice) 38 identity cards, 38 wait cards, and a transparency of the Figure 1 graph.  Click hereto download the cards and graph in pdf format.  Before the game begins, the identity cards should be put in numerical order with #1 on top.  Count out as many identity cards as there are students in the class, and put any extras away.  Shuffle the cards very well, then verify that at least some of the cards near the top of the stack (which will go to the students near the front of the line) show only small benefits from the ice.  If not, shuffle again or plant two or three cards showing small benefits near the top.  Put the wait cards in order of the length of the wait, with the shortest times on top.  Count out as many cards as you have students in the class, and put any extras away.   http://www.econoclass.com/frozen.html ... View more

Free riding (experiment) Students are asked to contribute to a public good; free-riding inevitably ensues. (public goods, free-riding) There are many variations of this game (e.g., see Games Economists Play) For larger classes, can be done with a sub-set of students as a demonstration for the rest of the class. Have students predict what will happen before game begins. ... View more

Fighting Recession (Just-in-time, context-rich problem, cooperative learning) Students analyze the 2009 fiscal stimulus package and assess its impact on the recession. Includes pre-class and in-class questions, cooperative exercises For larger classes, responses to some questions could be collected using clickers.   ... View more

Fidelity Fiduciary Bank (Econ video, song/movie clip from Mary Poppins) Song explains how bank savings become investment. ... View more

Fed Chairman game (simulation, cooperative learning) In the role of Chariman, students must make monetary policy decisions. Students will need laptops to do this in class. Follow-up questions could be asked using clickers.   ... View more

Fear the Boom and Bust - a Hayak vs. Kaynes rap anthem (rap video by EconStories) Hayak and Keynes explain their respective schools of thought. ... View more

Fast Car (Econ video, song by Tracy Chapman) Singer is trapped in cycle of poverty ... View more

Exchange rates (experiment) Students are buyers of either domestic or foreign goods. ... View more

Exchange rate controls (experiment) Students are exporters and importers in a developing country and must trade for U.S. currency. ... View more

Economies of scale (cooperative learning) Students work in groups to calculate short-run cost curves and then create a long-run average total cost curve. In larger classes, responses to follow-up questions could be collected with clickers.   ... View more