Corn prices (context-rich problem) Students are asked to explain the impact of rising corn prices on secondary markets. Can have students complete individually, with think-pair-share or small groups. In larger classes, student responses can be collected using clickers.   ... View more

Airline revenues (context-rich problem) Students must use a supply and demand diagram to explain an increase in airline revenues. Can have students complete individually, with think-pair-share or small groups. In larger classes, student responses can be collected using clickers.     ... View more

Changing the minimum wage (context-rich problem) Student analyze a proposal to raise the minimum wage. an have students complete individually, with think-pair-share or small groups. In larger classes, student responses can be collected using clickers.   ... View more

Feeding students candy (experiment) Have students rate their happiness (utility) as they consume more and more chocolate. 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 between rounds. here are many ways to vary this activity with different goods (e.g., have students consume marshmallows instead of chocolate).   ... View more

Deriving a demand curve (experiment) Instructor asks the class how many students would be willing to pay various prices for a specific good. Results are tabulated into a demand curve. Extensions include changing the conditions to shift the curve (e.g., would demand for a cold soda change if the day were hotter/colder). or larger classes, can be done with a sub-set of students as a demonstration for the rest of the class, or results can be collected with clickers. Salemi, Jee 2009, describes similar activity but asks students to name their price (i.e., runs an auction) for a unique good, rather than naming price and tabulating quantity. This focuses attention on reservation prices.   ... View more

Demand for champagne (context-rich problem) Students must analyze a situation in which a newspaper article confuses movements along the demand curve with shifts in the curve. For larger classes, could be done with a sub-set of students as a demonstration for the rest of the class. Follow-up questions for a representative graph could be asked using clickers.   ... View more

Deriving a supply curve (experiment, demonstration) Instructor asks students the minimum price they would accept in order to shave their head. Alternatively, instructor could name prices and ask class how many students would be willing to shave their head at each price. Either way, results are tabulated into a supply curve. For larger classes, can be done with a sub-set of students as a demonstration for the rest of the class, or results can be collected with clickers. ... View more

Many people do not realize that Hawaii is the world's largest producer of farmed shrimp. In 2014, shrimp was Hawaii's largest export (and not pineapples as commonly assumed). Much of this shrimp goes to Asia, where some end up in factories where low-wage laborers peel and process the shrimp. This has led to some debate regarding the fate of laborers (some of whom were enslaved) to process seafood that is eventually exported back to the United States. This is a good topic to discuss when covering international trade, production, and labor markets. Hawaii Is the World's Shrimp-Breeding Capital​ Hawaii Business (September 2014) Hawaii Ranks Biggest Exporter of Shrimp​ KITV.com (December 15, 2015) ... View more

Cafeteria trays (context-rich problem) Students analyze a proposal to eliminate trays in the school cafeteria. Can have students complete individually, with think-pair-share or small groups. In larger classes, student responses can be collected using clickers.   ... View more

Making rational decisions in economics - the role of sunk and marginal costs (cooperative learning, Just-in-time-teaching) Students consider whether a decision to go to the beach in the rain so as not to 'waste' a pre-payment that was already made is "rational" Can have students complete individually, with think-pair-share or small groups. In larger classes, student responses can be collected using clickers.   ... View more

Asymmetric Information, Bargaining, and Comparative Advantage in Trade Relationships Southern Economic Journal Vol. 74 No. 2 (October 2007) by Eric Chiang Description of Game The concept of comparative advantage is a fundamental tool in economics. Yet, it is a concept that new students of economics frequently find challenging to grasp. In this interactive classroom game, three essential lessons of comparative advantage are emphasized: 1) individuals can have a comparative advantage (and thus benefit from specialization) in an activity despite not having an absolute advantage, 2) the gains from specialization are greatest when individuals have the most heterogeneous skill sets, and 3) the extent of each individual’s share of the gains from specialization is often left to negotiation, with asymmetric information playing an influential role. This classroom game allows each player to possess a unique production function, thus better resembling the diverse pool of potential trade partners that characterizes real-life trade.     ... View more

Auctioning seats Classroom seats are auctioned off on the first day Can follow with discussion of allocation mechanisms by asking students for alternative ways to allocate the seats ... View more

In celebration of #internationalwomensday, our iclickerqoftheweek‌ highlights a video from the new Marginal Revolution University series on Women in Economics. Check out the newly launched video on Janet Yellen.  "Though she lacked female role models, Janet Yellen remained steadfast in her interest in applying economics to help others--and in the process, became a role model herself of young women all over the world. Chairing the Fed ain't a bad accomplishment, either." These videos feature Test Yourself questions that make great @iclicker questions. Check them out here Janet Yellen Quiz.   Let us know how you use these with your students!  The quiz asks students to  Identify the roles that Yellen had before she was Fed Chair Who she succeeded as Fed Chair, and Commodity bundling ... View more

Start your class off with a timely topic with the #iclickerqoftheweek. Ask your students to read Election Infrastructure and the Market for Voting Technology from our friends at Econofact before class (https://econofact.org/election-infrastructure-and-the-market-for-voting-technology via @econofactorg). Kick-off your classroom discussion with these questions from our faculty advisor,Solina Lindahl, who teaches Principles of Economics at Cal Poly, SLO, shares questions related to the State of the Union address.  Let us know how you use these with your students!  *The correct answer is noted in bold. Topic: Election Infrastructure and the Market for Voting Technology Economic Concept: Types of Firms, Industrial Organization  What type of market best describes the suppliers of voting equipment? “Dominion Voting Systems, ES&S and Hart InterCivic acquired several of their smaller competitors in the first decade of the 2000s. Together, these three companies provide voting equipment to roughly 92 percent of the voting population in the United States, according to a 2017 report from the Penn Wharton School Public Policy Initiative” (https://econofact.org/election-infrastructure-and-the-market-for-voting-technology) Perfect Competition Monopolistic Competition Oligopoly Monopoly Topic: Election Infrastructure and the Market for Voting Technology Economic Concept: Markets In the “market” for voting technology, who are the demanders and who are the suppliers? The demanders are the voters, the suppliers are the local governments The demanders are the local governments, the suppliers are mostly private companies The demanders are mostly private companies, the suppliers are the local governments The demanders are the local governments, the suppliers are the voters Topic: Election Infrastructure and the Market for Voting Technology Economic Concept: Firms and Profit-Maximization What type of problem is likely to be created in markets such as those described below?  “Unlike other countries that have a centralized election authority, each individual state in the United States is responsible for setting their own election standards and procedures. In practice, the majority of election management functions are delegated to county and town governments in many states, which means that the potential customers for election technology number in the thousands with varying levels of resources and technical expertise.“(https://econofact.org/election-infrastructure-and-the-market-for-voting-technology)  The suppliers will have trouble meeting the exacting requirements of powerful, unified demanders The suppliers will face low profits since their products “homogeneous” (they are interchangeable with competitors) The market is so fragmented that suppliers will have trouble developing a consistent, safe and high-quality product The market is fragmented that buyers will face too many choices of products that fit their specifications, making a decision difficult Topic: Election Infrastructure and the Market for Voting Technology Economic Concept: Firms and Profit-Maximization If you were the CEO of a voting equipment firm who faces a market described by the following, what would be your most likely strategy? “States and counties often lock themselves into ten- or fifteen-year contracts for voting machines because of how expensive this equipment is and its lack of interoperability with other systems, which requires them to completely replace their equipment if they want to switch to a different vendor.” and “vendors report that acquiring EAC certification, which some states require, can take two years or more and can run above $1 million per voting system” (https://econofact.org/election-infrastructure-and-the-market-for-voting-technology),  To concentrate on investing in product improvement and safety  To stick with existing technologies and avoid changes that would require re-certification  To spend money lobbying and marketing in an effort to gain contracts To engage in litigation over unsuccessful bids B, C and D are correct ... View more

Engage your students before you launch into your lecture with the #iclickerqoftheweek!  Tyler Cowen and Alex Tabarrok, authors of Modern Principles of Economics, share their favorite question about the market for roses to help you talk about price on #valentinesday.  Have your students watch how the #invisiblehand delivers roses in this short video, and then answer these questions.  (Click here for the video: I, Rose - YouTube ) Start your students off with a target question (learn how to use target questions here: iClicker Support) with a world map (search via Google Images for a world map with the countries labeled) and ask your students to Click on the country that the majority of the world's roses are coming from, according to the Chapter Opener in CH 7 The Price System: Signals, Speculation and Prediction (Page 119 in Micro and Econ).  Answer: Kenya.  Why did flower production move out of the United States in the 1970s? a) Flower blight in the United States. b) Disco c) An increase in the price of oil raised heating costs relative to transportation costs. d) A change in preferences increased the demand for flowers grown elsewhere. Correct answer: c Suppose that imports of flowers were taxed (a tariff) what would happen to the US production and consumption of flowers? a) US production would increase, US consumption would decrease b) US production would decrease, US consumption would increase c) US production would decrease, US consumption would decrease d) US production would increase, US consumption would increase Correct answer: a Suppose that imports of flowers were taxed (a tariff) what would happen to chocolate consumption around Valentine's Day? a) No expected change b) Chocolate consumption would increase c) Chocolate consumption would decrease Correct answer: b (chocolate is a substitute for flowers) Additional questions for discussion Why are so many countries involved with getting roses into the United States for Valentine's Day? If the price of airline fuel goes up, trace out the mechanism by which the number of roses given on Valentine's Day is likely to decline.  If you are trying to predict which countries might supply roses for Valentine's Day, which factors might be likely to play a role? ... View more