How to Teach Market Economics

The world of economics is one of the most fascinating issues of today's society, but it is also quite difficult to teach. Because the market's structure and mechanisms are such a complex issue, students can easily be lost in the chaos of numerical information and economics terminology. However, teachers can make the lesson easier by breaking down the market into its central components and using everyday experience to explain difficult topics. In a way, it's like teaching math: no matter how difficult limits of functions or advanced geometry can be at first, there's always a solution via the four basic arithmetic operations.

Instructions

    • 1

      Don't omit the basics. Never assume that students already know things that you take for granted. For children at a young age, the best starting point is a lesson on buying and selling, one of the most important activities in the market. Every other aspect of market economics is related to this topic. As they reach middle and high school, you can introduce new topics, such as trade, competition and types of products, like substitutes and complements. Even college students, who chose to be taught this subject, may find it difficult to understand complex issues, such as how a stock market works, and you will have to go back to the easier terms of trade and company ownership.

    • 2

      Give examples of every topic from your personal experience or even the students' past events. Everyone is a part of multiple transactions throughout the day, from buying a cup of coffee to negotiating a bank loan, so even if they are not aware of it at first, students can use their experience to understand the market's structure. For example, ask them to imagine how many more customers bought coffee at a price larger than the initial cost and how much profit he could have made. It will help students understand the process of accumulating wealth, even in small businesses. In addition, you can ask them to relate the interest rate in their bank loan to the current economic climate.

    • 3

      Use graphs. Endless statistics in numerical form and multi-page economic theories can tire students and eventually make them lose interest. In addition, graphs will make the difficult aspects of market economy easier for students. For example, market growth, the power of world economies and market capitalization of the biggest stock exchanges, are made more clear and easier to compare with the use of graphs.

    • 4

      Assign tasks constantly, particularly problem-solving exercises. Memorizing information on market economics is worth nothing if students can't put theory into practice. After all, they only learn the theory in order to use it at their future job or to sort their personal finances. An example of such an assignment could be to find when a business went bankrupt, provide its initial capital figure and study its profit/loss information and the fluctuation of the bank loan's interest rate.

    • 5

      Invite market specialists or successful businesspeople to help you explain specific topics and share their personal stories with your students. Particularly in college courses, this method is used at times, attracts students and gives them extra motivation to try and master market economics.

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