Teaching Economics

HIS 420 Spring 2012 Scott Fenwick rsfenwick2@gmail.com

UICs Center for Economic Education

Dr. Helen Roberts - hroberts@uic.edu http://cee.econ.uic.edu/ Certificate for Teaching Economics http://cee.econ.uic.edu/certification.html http://cee.econ.uic.edu/undercertification.html

What Economics Should We Teach Before College, If Any?

by
Helen Roberts and Deirdre McCloskey University of Illinois at Chicago

Review/Reflection
On your own
1) Whats the big or essential question that Roberts and McCloskey seek to answer? [one sentence] 2) Whats their argument? [1 or 2 sentences]

3) Circle three words or terms that you think are important.

4) Underline three words or terms that you dont understand or are unfamiliar with. 5) Draw a box around the most important sentence or phrase.

Pair and Share

With a partner
Share and discuss your responses to numbers 1-5.
Did you have similar or different responses? Why or why not?

Whole Class Discussion

What is the enduring understanding or big takeaway?

Do you agree or disagree with the authors? Why or why not?

Four Pieces of a Comprehensive Economics Education

Microeconomic Concepts
Macroeconomic Concepts Historical/Philosophical Foundations of Economics Financial Literacy

Voluntary National Content Standards in Economics

VNCS
http://www.councilforeconed.org/wp/wpcontent/uploads/2012/03/voluntary-nationalcontent-standards-2010.pdf

Microeconomic Concepts in VNCS

Scarcity Decision Making Allocation Incentives Trade Specialization Markets and Prices Role of Prices Competition and Market Structure Institutions

-Photo Elicitation ActivityIntroduction to Microeconomic Concepts

-Photo ElicitationIntroduction to Microeconomic Concepts

Look at the ten images on the tables. Each image represents one of the ten concepts defined on your worksheet. Walk around the room and match the images to the definitions. Youre free to converse and debate with your classmates! Remember, this is your interpretation, so dont worry about getting things exactly right. Well discuss the results when you finish.

What are these people so pissed off about?

Argument:

If free trade is so bad, why have people been doing it (and trying to do it) for well over 4,000 years??!!

Simulation:

The Gains from Trade

You (yes, you) are your own nation. In your glorious land of one, your diet consists only of candy. Like all nations, your resources are limited so is your productive capacity.

Round 1: Autarky
Since the dawn of time your great nation has believed in the idea of self-reliance. Despite the fact that the Dear Leader (you) know there are other people (and products) out there in this great big world, the Dear Leader thinks its a good idea to just consume what youre capable of producing. You only produce one thing or a few variations of the same thing.

Round 1: Autarky
Open your bag of goods. DO NOT SHOW ANYONE WHAT YOU PRODUCE! This is autarky!!! You know other types of candy exist, but borders are closed!!! Okay, this is what nature has determined for you. Cest la vie. On a scale of 1-5, with one being kill me now and 5 being my land is the greatest, rate your bag of goods in terms of utility (or happiness).

Round 2: Bilateral Trade

You Dear Leader have had a change of heart. Perhaps you have more in common with your neighbors than you thought. Maybe theyre not so bad after all? The only way to find out is to open up trade talks

Round 2: Bilateral Trade

You have agreed to bilateral trade talks with two of your neighbors.

If you want to trade, you are allowed to trade ONLY WITH THE PEOPLE SITTING NEXT TO YOU (maximum two)! Do not show your bag of goods to anyone else. Remember, you are not obligated to trade.
There is no limit to what and how much you can trade with a single trading partner. No multilateral trading allowed! Once trading has ceased, on a scale of 1-5, with one being my neighbors are useless and five being perhaps dual citizenship is in order, rate your bag of goods in terms of utility (or happiness).

Round 3: Global Free Trade

Something unprecedented has occurred in your nations history. The Dear Leader (yes, thats you) has been presented with an unimaginable opportunity. The United States of Scott has invited you to Chicago to participate in the 2012 Global Trade Fair! Hell send a private jet, so pack your bag of goods and lets go!

p.s. dont forget to bring your gasmask and flak jacket

Round 3: Global Free Trade

Welcome to the Global Trade Fair at UIC! You are allowed to trade with anyone you meet! But, you are not obligated to do so. There is no limit to the number of people you can trade with or the amount of goods you trade. Multilateral trades are permitted! The only rule is that you must come away with something!

Round 3: Global Free Trade Once trading has ceased, on a scale of 1-5, with one being Im going back to my cave and five being time to buy a fleet of cargo planes, rate your bag of goods in terms of utility (or happiness).

Macroeconomic Concepts from VNCS

Money and Inflation Interest Rates Income Entrepreneurship Economic Growth Role of Government and Market Failure Government Failure Economic Fluctuations Unemployment and Inflation Fiscal and Monetary Policy

Inside Job (2010) by Charles Ferguson Academy Award Winner Best Documentary Film

Lunchroom Conversation Would you use Inside Job in your classroom?

Students and teacher read, listen to, or watch something Teacher give a prompt or poses a question Students talk to each other Teacher monitors, takes notes (and tries not to interrupt)

Some folks you should know

Larry Summers Robert Rubin Alan Greenspan Ben Bernanke Timothy Geithner

Inside Job Teachers Guide

Previewing and Postviewing prompts and questions Four activities with handouts http://www.sonyclassics.co m/insidejob/_pdf/InsideJob _StudyGuide.pdf

When Income Grows, Who Gains?

Economic Policy Institutes State of Working America project

http://stateofworkingamerica.org/

Historical/Philosophical Foundations of Economics

Why? Because students need context in order to understand abstract ideas.
How? Economic History, Biography, Primary Documents, Documentary Film

Who are these guys?

1
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3 2 4

10

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13

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1) Ibn Khaldun 2) St. Thomas Aquinas 3) Adam Smith 4) Thomas Malthus 5) David Ricardo 6) John Stuart Mill 7) Alfred Marshall 8) Karl Marx 9) Thorstein Veblen 10) Irving Fisher 11) John Maynard Keynes 12) Friedrich August Von Hayek 13) Joseph Schumpeter 14) Paul Samuelson 15) Milton Friedman 16) Paul Krugman

Historical/Philosophical Foundations of Economics New Ideas From Dead Economists by Todd G. Buchholz

The Worldly Philosophers by Robert L. Heilbroner

Historical/Philosophical Foundations of Economics

Examples of Primary Documents:
The Muqaddimah by I. Khaldun The Wealth of Nations by A. Smith An Essay on the Principle of Population by T. Malthus Das Kapital by K. Marx Principles of Economics by A. Marshall The General Theory of Employment, Interest and Money by J.M. Keynes Economic Organization of a P.O.W. Camp by R. A. Radford

Historical/Philosophical Foundations Lesson Plans

NCEE Lesson Plans http://search.store.yahoo.net/ncee/cgibin/nsearch?catalog=ncee&.autodone=htt p://store.councilforeconed.org/nsearch.htm l&query=history&x=0&y=0 Scotts Lesson Plans http://scottfenwickteachingeconomics.wikisp aces.com/Economists+for+Consideration

Examples of CEE Lesson Plans

Adam Smith and the Market Economy The Decline of Spain The Constitution: Ground Rules for the Economy Growth after World War II

Macro Hip-Hop from

Fear the Boom and Bust John Maynard Keynes vs. Friedrich August Von Hayek
http://econstories.tv/2010/06/22/fear-the-boom-and-bust/

More on the Fight of the Century from econstories.tv

http://econstories.tv/2010/10/25/part-i-keynesianism-%E2%80%93it%E2%80%99s-all-about-spending/

Even more on the Fight of the Century from econstories.tv

http://econstories.tv/2010/10/22/fear-the-boom/

Financial Literacy
There has been progress in economics education, but this trend had slowed in the last couple of years. Our economy has become financialized, so we must become financially literate! Situation in Illinois: Non-financial econ education remains stagnant and behind the trend. Financial literacy education is trending upward! http://www.councilforeconed.org/newsinformation/survey-of-the-states/

Financial Literacy
Read Aloud & Dialogue With a Text: Greater Fools by James Surowiecki, writer of The New Yorkers Financial Page http://www.newyorker.com/talk/financial/201 0/07/05/100705ta_talk_surowiecki

Financial Literacy
National Endowment for Financial Education (NEFE) High School Financial Planning Program http://hsfpp.nefe.org/

CPS and NEFE Partnership http://www.nefe.org/NEFENews/CPSVideo/tabid/858/De fault.aspx

Council for Economic Educations Financial Fitness for Life http://fffl.councilforeconed.org/

Important Resources
Council on Economics Education (CEE) http://www.councilforeconed.org/ CEEs Virtual Economics DVD http://ve.councilforeconed.org/
The Federal Reserves Educational Materials http://www.federalreserveeducation.org/

Teaching Economics Wikispace

http://scottfenwickteachingeconomics.wikispaces.com Do you (or will you) using its content in the classroom? If yes, please share your ideas! Send me an e-mail at: rsfenwick2@gmail.com

Recommended Reading
If youre going to teach an economics class and only have time to read one book, I recommend Naked Economics (2010) by Charles Wheelan.

Article Presentations
Why did you choose the article? Using your reading strategy, how would you teach this article? What essential question(s) and enduring understanding(s) might this article help answer and generate? After the students have successfully read the article, what happens next?