Many students who take economics classes have difficulty understanding the abstract nature of theory. Most economics courses utilize mathematical curves and statistical models to exemplify economic theories. Teachers can start the course by developing the quantitative skills, such as reading graphs and exercising calculus, necessary for economics before teaching the theory. For example, the Laffer curve can be first drawn and then explained when teaching supply-side economics.
Teachers can help students understand theory by connecting core economic principles to a real-life scenario. For example, the law of supply and demand dictates that when supply goes up, price goes down, and demand will continue to increase so long as the price goes down to, but not below, a certain price level. Choose a popular item in the market. Illustrate that when the product debuted, not many were sold, but as the price dropped gradually, more consumers purchased the product. This may be illustrated with statistics from the company's website, retail figures from a local seller, or news paper articles discussing the product.
Establish the classroom as an interactive learning experience. Develop a student's expectation that speaking in class is required. Present news and magazine articles about a specific topic in economics for in-class discussion. Call on students to answer questions and count class participation as part of the final grade. Assign group projects that highlight principles of supply and demand, price equilibrium and opportunity cost.
Students may take ownership of learning economics if they are given the opportunity to teach a lesson in class themselves. Teachers can assign a topic to a group of students for college classrooms that do not meet as frequently as high school classrooms. College students may teach on scarcity and how it impacts consumer prices or the opportunity cost of business decisions. High school students may teach lessons that define economic risk or define profit and give examples of each.