Reframing Principles of Economics:From Plastic Arts to Block Construction

Abstract

One reason many college students shun economics is ineffective education. A more systematic way of explanation, with standardization and consistency, would promote learning of economic theories. This paper suggests a new framework for effective economics education. It begins with clear identification of the assumptions as well as some key concepts and tools in economics as the building blocks. After that, it illustrates how theories for efficient markets, as the base-case constructs, can be built with so-defined blocks. By following this process, students will understand essential economic theories more easily than through the traditional ways just like fabricating constructs with predefined Lego blocks is easier than making things with plasters. After being familiar with basics, students can advance to non-standard constructs with modified blocks or sophisticated theories for irregular conditions. In a similar manner, they can study some unique traits of the macroeconomy which cannot be explained by the microeconomic models. By comparing the base-case models with market irregularities and macroeconomic peculiarities, students can clearly differentiate the roles of the government from those of the market.