Masters of the Economy (experiment) Students make fiscal and monetary policy choices in order to maintain a target growth rate. Can be done individually or in groups for larger classes.   ... View more

Market entry/exit (experiment) As producers, students choose one of four markets to enter and observe how profits respond. [entry/exit, long-run] Also see Variations here and here   ... View more

Market concentration (experiment) Students must make production decisions over several periods as the market becomes more concentrated. There are several variations of this experiment available (for example, see here and here)   ... View more

Job growth has been healthy over the past five years. However, many people are still concerned about the overall health of the labor market. This module explains what the unemployment rate does—and does not—measure and whether it is a reliable indicator of the health of the labor market. Includes questions. Making Sense of Unemployment Data | Education | St. Louis Fed  ... View more

Make that Money​ (Econ video, song by Robbie Rob's Club World) There are many ways to make money. This Econ video notes how money is defined and the different items that have been used as money. ... View more

Macrolandia ​ (context-rich problem) Students draw on their understanding of economic growth in order to recommend policies for a developing country. Could be done in-class or assigned as homework and then discussed in class For larger classes, could have students work in groups and/or use clicker questions to solicit responses ... View more

Lucas island (experiment) In each round, announcements about Fed policies impact the business cycle and students make decisions about how many hours to work when their real wage is uncertain. ... View more

Labor market discrimination (experiment) As employers, students make hiring decisions with incomplete information. Illustrates inefficiencies from discrimination. ... View more

Kenyan water policy (context-rich problem) Students draw a demand curve and calculate elasticity from given data and are asked to compare two policies, one involving a change in price (movement along the curve) and one involving a change in preferences (shift in the curve). ... View more

Ka-ching (Econ video, song by Shania Twain) Song highlights consumer obsession with spending more and more; video comments note the impact of this behavior on the larger economy. ... View more

Job search (experiment) Students accept or reject wage offers, highlighting search costs and labor market interactions. ... View more

A wonderfully funny, relevant, and insightful opinion on markets by New York Magazine art critic Jerry Saltz, responding to NPR 's question: should the sculpture of a fearless girl in Wall Street be in front of behind the iconic bull's market sculpture?   The audio of the interview is just a few minutes long, so you can play it for students during class. But, it may be even better to serve as an assignment, perhaps with the following discussion question: Do you agree or disagree with Jerry Saltz that markets are better represented by a sheep rather than a bull?  Please explain. A Tussle Over Wall Street Sculptures ... View more

This is an example that I’ve adapted from an original story posted by Eric Keetch in the Financial Times on August 12, 2009 titled “Quantitative Easing: It’s So Simple!” Suppose Will gives his wallet containing $100 to Alex to hold while he works out. During Will’s workout, Alex uses the $100 to pay his mechanic who fixed his scooter. The mechanic then took this $100 to his vet to pay off his past due account from services previously provided to his dog. The vet then used the $100 to pay Alex for money she owed him for tutoring her in economics. Alex then puts the $100 back into Will’s wallet. After Will’s workout, Alex returns the wallet to Will without him ever realizing that money was temporarily missing. Although the same $100 was used without Will’s knowledge, everybody’s debt has been settled. How much money was created out of thin air?    $300 $200 $100 $0 Answer: $300. Although the same $100 was used, the money was able to satisfy three separate $100 transactions. The same outcome would have happened if everyone: Alex, the mechanic, and the vet, each had their own $100 and used it to settle their debts. Instead, none of the three had any cash, but instead “borrowed” Will’s $100 and used it three times without him knowing. ... View more

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