Chapter 104: How Do You Do Economics
👩 Teacher’s Guide
🎯 Objective
Students will be able to:
- Explain that doing economics involves asking questions, forming hypotheses, and using evidence
- Describe basic tools economists use: graphs, data, models, and comparisons
- Practice reasoning with costs, benefits, and opportunity costs
📝 Teaching Notes
- Key idea to emphasize: Economics is a way of thinking—ask 'compared to what?' and 'what are the trade-offs?'
- Common misconception: Economics is only math and formulas
- Suggested teaching approach:
- Run a mini-experiment: offer two small rewards and observe choices
- Real-life connection: compare two phone plans using costs and benefits
💬 Discussion Starter
Ask students:
- If you could change one rule at school, what economic effects might it have?
- When you see a 'sale' sign, what questions should you ask before buying?
🧒 Student Worksheet
Concept and Helping Material
This topic explains:
- Start with a clear question (What will happen if…?)
- Make a hypothesis (a testable prediction) based on incentives and constraints
- Collect and analyze data (surveys, prices, quantities, experiments, or existing statistics)
- Compare outcomes and revise your explanation if the evidence disagrees
Why it matters:
- Doing economics helps you evaluate decisions and arguments using evidence, not just opinions.
Vocabulary and Definitions
- — A testable prediction about what will happen
- — Information collected to measure and test ideas
- — Comparing the costs of an action with its benefits
- — The effect of a small additional change (one more unit)
- — A structured test where conditions are controlled to learn what causes what
Samples (Examples + Short Analysis)
Sample 1 Comparing two snack options
Scenario: A student chooses between a $2 snack that is filling and a $1 snack that is small.
Analysis:
Sample 2 Testing a longer lunch period
Scenario: A school extends lunch by 10 minutes to reduce cafeteria crowding.
Analysis:
Sample 3 Deciding whether to buy a monthly pass
Scenario: A commuter can pay per ride or buy a monthly transit pass.
Analysis:
Practice Questions (QA)
- What is a hypothesis?
- Name two kinds of data economists might use.
- What is cost-benefit analysis?
- What does 'marginal' mean in economics?
- Why is 'compared to what?' an important question?
- How could you study whether a sale increases purchases?
- What is an example of an opportunity cost in a study plan?
- Why might an experiment be useful in economics?
- What should you do if evidence contradicts your hypothesis?
- How is doing economics different from having an opinion?
Reflection
- Choose a decision you face this week and write one cost and one benefit.
- What small 'marginal' change could improve your daily routine?