A Word on the Economy: Why Is the Country Facing a Financial Crisis?

Summary: St. Louis FED VP, Ms. Julie Stackhouse moderates.

If you and your students want a clear explanation of the financial crises, click here. This podcast is for AP Macroeconomics.

The pdf version is also available for download on the site.

As media becomes digitized, do you find your instruction changing? Are you using more videos for instruction and less teacher-directed instruction?

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.

The Push Up Machine for AP Microeconomics

Summary: Kudos on a brilliant lesson plan.

The YouTube video is here. This video shows how many workers to hire assuming diminishing marginal returns.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is also an EconEdLink.org author.

Two-Minute Drill -- Balance of Payments

Summary: Calculating Balance of Payments, Current Account, and Financial Account.

The Acorn Book states that the "Financial Account" will replace the "Capital Account" on this year's exam. This drill is intended to remind students that the Balance of Payments always sums to zero.

My answers are: imports = 1100; financial account balance = 800; BOP = 0 with no statistical discrepancy.

Stress to your students that CA + FA = 0.

Extra Credit: using the spending equation for calculating GDP, can you prove that a current account deficit must mean a financial account surplus?

AP Macroeconomics students seldom have had accounting. I stress that the Balance of Payments is really a system of debits and credits. Exports are a credit (+) and imports are a debit (-) so they offset each other. Likewise, when foreigners buy domestic assets the transaction is a credit (+). Some economists call this a capital inflow. When domestic citizens buy foreign assets including bonds and direct foreign investment, the transaction is a debit (-). This would be a capital outflow.

Some illegal transactions are not captured in the balance of payments and this motivates the need for a statistical discrepancy.

In recent years, the United States has a large current account deficit. Do you think this is a problem?

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa.

Two-Minute Drill -- Perfect Competition

Summary: AP Microeconomics perfect competition.

1. What price would LR Competitive equilibrium be on the graph?
2. At Price P3, what area is profit?
3. What point is resource allocative efficient?
4. Below what price would the firm shut down?
5. The difference between ATC and AVC equals _______?
6. What point is productive efficient for the firm?

1. P1 2. P3ABP2. 3. C 4. P 5. AFC

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa.

Oligopoly Lesson Plan for AP Microeconomics

Summary: Jason Welker's plan. Two-Minute Drill.

An interactive plan for teaching oligopoly behavior is here.

Did you know that "oligopoly" comes from a Greek root meaning "few"? Usually, an oligopoly market is taught with four firms sharing the market or few firms. When teachers teach game theory, these use a duopoly, or two firms.

After reviewing the plan linked above, I have two questions. 1. What is a prisoner's dilemma? Would the game between Starbucks and SF Coffee be a prisoner's dilemma if it looked like the payoff matrix shown in here?

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa.

Two-Minute Drill Real Interest Rates

Summary: Calculate the real interest rate. Interpret the results.

While reading the Wall Street Journal, you note that the interest rates on 1-year Treasuries are 8%. You expect inflation to be 2% over the next year. What is the real interest rate?

The real interest rate equals the nominal interest rate minus the expected rate of inflation. In my example, the real interest rate equals 6% (8% - 2%).

A real interest rate of 6% means that if I forgo $1 in spending today, I'll be able to consume $1.06 in the future. Remember to use the real interest rate, r, on the vertical axis when plotting the Loanable Funds Market.

Extra Credit: Can you show that 1+r = (1 + i) / (1 + e) is roughly equivalent to r = i - e? Assume that i is the nominal interest rate and e is the expected rate of inflation.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is currently working on a model to easily teach the Loanable Funds Market in AP Macroeconomics classes.

Tip 35 -- Have Passion for AP Economics

Summary: Passion.

"Good teaching is as much about passion as it is about reason. It's about not only motivating students to learn, but teaching them how to learn, and doing so in a manner that is relevant, meaningful, and memorable. It's about caring for your craft, having a passion for it, and conveying that passion to everyone, most importantly to your students." This quote is from Richard Leblanc, York University, Ontario. The site is here.

When you show passion for your subject you send a double message. One message you send is that your content is important. The second message is that the content matters. When students can see that you believe in what you are teaching, they will take your class seriously. Your passion will show in how you continually prepare for class. Your passion will show in the books you read and how you talk.

I am convinced that when a teacher has passion, his students will to.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.

Tip 34 -- Have Students Keep a Journal

Summary: Make students write.

You can enhance learning by requiring student to keep a reading, thinking, and lecture journal. The goal of the journal is to have students make connections among the various isolated concepts and skills that they learn in other classes. You can use it to see if students are reading and reviewing their lecture notes.

If you choose to have your students keep a journal, how do you grade it?

I use a vertical line or an underline to show that the student writing was accurate. I use squiggly lines to show that the writing was shaky. I use an "X" to show that the student writing missed the mark. I also use "+" when a student makes a good point. I feel no need to comment since this isn't a writing class. I don't grade grammar or spelling. Instead, I focus on exploring the economic concepts.

The use of journals requires students to use evaluation, analysis, and synthesis--higher order thinking skills. The use of a journal will enhance the learning experience and allow students to see the relevance in their course work.

Writing is a skill that is hard to automate and outsource so students add value to their human capital that differentiates them from global competition. Last year, I used a blog for students to comment on articles. I found that each student developed an individual online personality.

When you require students to keep a journal, you are helping to make them competitive. Please share your thoughts on the writing processes you have used in your classes.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA.

Tip 33 -- Use Instructional Technology

Summary: Tools that flatten the world.

How do you hold AP Microeconomics and AP Macroeconomics students to a high level of accountability that also prepares them for the global economy? Try using Web 2.0 tools.

In the best selling book, The World is Flat, Thomas Friedman asserts that the Internet makes information accessible to everyone, especially open sourcing. Open sourcing is the ability to upload and collaborate online. An example of open sourcing is Wikipedia. Open sourcing allows communities to divide the manufacturing and the service components apart so that workers can work to their comparative advantage. When I developed my iPod App, Econexamcram, I used Skype as my primary communication. But, when I wanted to show a complicated process, I used a Flip Camcorder and sent the video through Google mail.

Competition for scare resources is now global. How do we teach students how to compete? One solution is to teach them how to use instructional technology. Here is a list: 1. Have students produce a YouTube video. 2. Have students use Photo Story 3 to make and narrate a slide show. 3. Here is a site that claims to have all of the tools. 4. Develop a class Wiki.

If you would like to gain insight into designing your presentation for the 21st Century, please check out Presentation Zen.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School.

Tip 32 -- Making AP Economics Stick

Summary: Made to Stick. Product differentiation.

In the marketing world, there's a saying that goes, "Facts tell. Stories sell." Buyers who are told a story are motivated to buy the product. If you want your students to "buy" your instruction, try telling a story around the concept.

In the best selling book, Made to Stick, by Chip and Dan Heath, they outline 6 steps for making an idea stick. Those 6 steps are: 1. Simplicity 2. Unexpectedness 3. Concreteness 4. Credibility 5. Emotions 6. Stories.

These six steps will show you, not tell you, how to teach for effective instruction. After reading this book, I challenge you to pick up any best selling novel and see if these concepts have been applied. You can simply elevate your instruction to the top floor by using these techniques. The best thing I have learned is that students never get bored of the technique.

I believe that the world is becoming competitive at the speed of sound. Thomas Friedman explained this concept in The World is Flat. In this flat world, technology allows global-price factor equalization as more and more content is digitized and resources become mobile. How much substitution do you face for your teaching? At Muscatine High School, students can take Microeconomics or Macroeconomics at the community college and receive college credit. They can also take the same classes online. If I want to compete for students against technology and substitution, I must differentiate myself.

I differentiate my instruction by how I deliver my content. Made to Stick is an excellent source for teacher of AP Macroeconomics and AP Microeconomics to differentiate their instruction.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author and blogs at Mikeroeconomics.

Tip 31 -- Use Similes in AP Economics

Summary: Spice up content instruction using the writing techniques of similes.

How do you teach so that instruction sticks? Try using "figurative and descriptive" language. One technique I employ are similes. "Similes compare two unlike things using phrases that begin with like or as. Similes help you see pictures in your mind" writes Renee Kirchner. I use similes to make instruction concrete.

If I am talking about how a perfectly competitive market adjusts rapidly to equilibrium in AP Microeconomics, I will end by saying that the market will adjust to equilibrium faster than a Pentium 3 microprocessor. I try to avoid cliches like "faster than a speeding bullet" since students will view my instruction as uncreative. Suppose that I believe that wages are sticky downward in AP Macroeconomics. Then I might say, "Wages adjust slower than the seven-year itch."

I believe that pairing concepts with clever similes allows students to organize and recall the material easier. When students are working on homework, they have pictures to show the speed of adjustment in micro and macro. See if the following simile works for you that I lifted off of a commercial.

Assume that you are talking about interest rate adjustment in the Federal Funds Market. You could say that the Fed Funds Rate adjusts instantly after the Fed adds liquidity, and your students will understand it. Or you could say, "The Fed Funds Rate will adjust to the new equilibrium faster than a scarred Gazelle being chased by a Cheetah on the African plane."

I think students will appreciate you sense of humor, your agile use of language, and your passion to bring economics alive in their classroom. You will find that they can't wait to repeat your simile to a friend. You will find that students can recall more content faster and apply it to more circumstances.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and blogs at Mikeroeconomics faster than the furious scribblers of the U. S. Constitution.

Keynes v. Hayek

Summary: PBS interview with Russ Roberts by Paul Solman. Excellent use of 10 minutes.

AP Macroeconomics teachers will benefit from this video. Sticky wages, government spending, crowding out, and pessimism. HT to Steven Reff.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High.

Nominal and Real Interest Rates for AP Macroeconomics

Summary: Peggy Pride's article.

The article is here.

Teachers and students often have questions about labeling the vertical axis on the liquidity preference and loanable funds graphs. In this article, Ms. Pride answers those questions.

In the loanable funds market, there is always a debate on whether to move the supply or demand curve when the government spends. I believe I have an easy answer that will eliminate all debate and students can easily remember and interpret policy. Look for an EconEdLink lesson and a YouTube video on this subject.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School. Mr. Fladlien believes that asymmetrical information in gift giving results in market failure.

Tip 30 Use HOTS in AP Economics

Summary: Higher Order Thinking Skills.

One of my favorite movies is Jurassic Park where dinosaurs run amok on an island terrorizing the visitors. In one scene a cow is lowered into a caged area where velociraptors are kept. The team of doctors are waiting for the cow to be devoured but noting happens. One of the characters says, "Velociraptor does not want to be fed. Velociraptor wants to hunt."

My AP students don't want to be "fed" memorization and recall questions they want to think.

Presumably, Higher Order Thinking Skills, HOTS, stimulate a higher level of thinking; HOTS are on the top of Bloom's Taxonomy; using HOTS prepares students for the 21st Century. I have dogmatically been told in teacher training to infuse these skills into my classroom in order to prepare students for a global economy. Since HOTS have been around education since 1980, I thought my teacher trainers were simply parroting what they heard. Does a lesson plan that is top heavy with HOTS prepare students for the 21st Century?

In Muscatine, we are fortunate to have an industrial base that has insulated us from recessionary pressures since WWII. For example, HNI is a Fortune 500 business. We also have Bandag, Heinz, MUSCO Lighting, and many more. My students would often graduate and go to work for one of these manufacturing firms. In the last five years, manufacturing jobs have disappeared in the United States and around the world. As factors migrate to low cost countries and automation replaces unskilled labor, the United States has shifted from manufacturing to a service based economy. Many services require a high level of learning characterized by HOTS. Students who have been challenged with HOTS are better able to adapt to disruptive technology and adapt to a rapidly changing job skills. At HNI, they have won Baldridge awards for the RCI--Rapid Continuous Improvement--model. So it seems that even manufacturers require their workforce to use the HOTS.

In my classroom, I find it necessary to have the HOTS questions written out in advance. When I try to ask questions on-the-fly, I almost always ask a rote, memorization or comprehension question.

If you use the HOTS in your classroom, you will prepare your students for the AP Microeconomics, the AP Macroeconomics, and the workforce.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He blos at Mikeroeconomics.

Two-Minute Drill -- Real Interest Rates

Summary: Real interest rates.

In January, 1981, the nominal interest rate on 1-year T-bills was 12.6%. The inflation rate in 1981 was 12%.

In January, 1999, the one-year T-bill rate was 4.5% and the inflation rate was 2%.

What was the real interest rate in each year? What year was the return in terms of a basket of goods the highest?

Answers: The real interest rate equals the nominal - expected rate of inflation. The real rate in 1981 was .6%. In 1999, 2.5%. In 1999, an investor would find that after adjusting for inflation, they could purchase a larger basket of goods than in 1981.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He blogs at Mikeroeconomics.

Tip 29 Equitable Distribution of Questions

Summary: Interacting with all students. Encouraging diversity enrollment.

Do you ask questions that can be answered? Who do you choose when you ask questions over a topic?

In my class, I put the names of students in a hat. I ask a question then randomly select a name of the hat. (The hat I use if from the Chicago Federal Reserve Bank compliments of Tim Schilling.)

After I select a name, I give wait time of five seconds for the student to answer. If the student has problems answering the question, I prompt.

I have found that I have a tendency to ask questions to students that I know will answer correctly. Asking questions in this manner communicates my expectations to the other students. The effect of asking questions in this manner is that only a few become involved in the class. But if I ask questions to random students, they all are accountable for the content.

Another benefit I have learned from asking random students questions is that I ask the high achieving students and the low achieving students the same question. I don't ask those students struggling with the content, "easy" questions. Again, I don't communicate my perception of a student by the type of question I ask.

If you have equity concerns, you will find that providing equal opportunity to contribute to the class will encourage minority students to take your AP Microeconomics or AP Macroeconomics classes.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He blogs at Mikeroeconomics.

Tip 28 Choose a Textbook

Summary: Choose a textbook you love. Brief Reviews of textbooks for AP Microeconomics and AP Macroeconomics. A plug for using print media in the classroom.

When you adopt a textbook, you adopt the author's philosophy. The first text I used was Roger Arnold's Economics by Southwestern-Thomson Learning. I adopted this book because I had used it at the community college to brush up on my economics skills and the book made connections between seemingly unrelated topics using economic thinking. For example, some of the topic in the Arnold text were "How May Crime, Outsourcing, and Multitasking Be Related?" and "Does Your College or University Price Discriminate?"

The next textbook I adopted was Krugman-Wells Economics. I was overjoyed with the amount of rigorous work this text provided. At the time I felt that the text would provide me with enough materials to differentiate and individualize instruction.

The Mankiw text is a book I seriously considered. I feel that Greg is one of the top economists in world. I have seen Mr. Mankiw on Fox News, read his blog, and like his writing delivery. When I really want to understand a macro concept, I reference his intermediate text. On several occasions I have asked Mr. Mankiw questions, and he has answered them.

I often wonder if textbooks are perfect substitutes. One thing is for certain, textbook are strategically interdependent. All come with workbooks, website with PowerPoints, videos, and test questions to name a few.

Are textbooks a complement to instruction? I think any textbook can be adapted effectively in your classroom. Choose a textbook you love.

The College Board has a review of textbooks here.

Do you think that online textbooks and digitized media are a substitute for textbooks? Is all information for a principles of economics class online? Can a student use Google, Reffonomics.com, YouTube, and amosWEB to find all of the answers to their questions without reading a textbook?

I have found that many of my AP Microeconomics students this year would prefer to have the two-minute version of a concept. But when they use the computer to learn the concept, they lose the kind of deep thinking needed for the AP test. As long as the AP test demands higher order thinking skills, you will need a textbook to prepare students for the exam.

Your comments are welcome.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author blogging at Mikeroeconomics. Mr. Fladlien believes that the climate is changing in the classroom and in weather patterns.

Tip 27 Practice Graphing AP Microeconomic Concepts

Summary: Graphing on wipe boards aids in skill acquisition.

You will find that students will like to graph on their own miniature white board. They like to erase quickly so no one sees their errors, and they like the large graphs that allow for creativity in their work.

I went to Menards, and bought 4' X 8' sheets of paneling. Then I asked the industrial tech department to cut them into 2 x 2 sheets. I found cheap dry erase markers at Walgreens and used Kleenex tissues for erasers. Students like to graph the concepts and receive immediate knowledge of results. They also like the different color markers that I give them. I have found this to be an effective alternative to taking notes.

I store the white boards in my classroom on an overhead stand that I can easily roll around the room if I need to. I think students like the fact that I worked extra to help them to learn so they respond by working harder on graphing.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author blogging at Mikeroeconomics.

Tip 26 for Teaching AP Economics.

Summary: Use active learning.

Find activities that don't involve rote memorization. Students will find the class more interesting if they are involved in stimulating activities. Some of my favorite activities are:

1. The M-Factory. In this activities students make the "M" for letter jackets to be used at Muscatine High School. The purpose is to show diminishing marginal returns. From this activity we calculate marginal product, average product, and graph the production function.

2. To show diminishing marginal utility I make students eat marsh mellows until they want to quit. This activity shows that more and more gives less and less utility.

3. To show that an increase in the money supply will increase prices, I throw play money in the room at random students. Then I offer candy for sale. Then, I double the money supply and offer the candy for sale again. This activity, combined with the equation of exchange, MV = PQ, shows that inflation is a monetary phenomena.

Many more activities can be found in Capstone student activities workbook.

After completing an activity, I find that students often mistake activity for achievement. You must debrief the students and make connections for them on the finer points. Have the students write a summary or complete textbook problems to reinforce the concepts from the activities.

Activities don't have to take the entire class period. Activities often stimulate further learning as students have an experience they can relate to.

What are your favorite activities?

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author blogging at Mikeroeconomics.

Christmas Test for AP Economics

Summary: Economics test for the holidays.

The test is here. Here's a sample question.

1. Assess the view that reindeer flying fast over urban areas generate considerable negative externalities and evaluate one method to reduce the external cost created.

This test courtesy of pajholden blogging at economics with pajholden.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.

Teaching AP Economics Tip 25

Summary: Find an institute or workshop.

The College Board has summer institutes and workshops to enhance teacher training. Click here to find the workshop closest to you.

I have attended a workshop at Triton College in Illinois that was excellent. I have also attended a micro/macro workshop at the University of Wisconsin Madison that changed the way I taught. The macro was taught my Wayne McCafferty. I also attended a week long institute at the University of Iowa with Amy Shrout. These workshops all enriched my teaching and my life.

When I attended these institutes I left for home with tons of materials. What I gained most was the enthusiasm from dedicated and energetic teachers who loved what they were doing. From these teachers, I learned how to teach.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author. Currently, Mr. Fladlien is searching for a way to teach real interest rates quickly.

Teaching Tips for AP Economics

Summary: More tips to teach AP Microeconomics and AP Macroeconomics/

20. Here is a Squiddo Lens for first time teachers.

21. Buy the Wall Street Journal Classroom Edition. The WSJ was $19.50 for 30 copies of the student edition for the whole year.

22. Make a Wiki. A Wiki is an editable blog in which students can add content. A Wiki allows students to interact with data and use Web 2.0 tools. This link tells you how to begin a Wiki. Here's how to use a Wiki in your classroom. The Wikipedia is here.

If you are a rigor-relevance disciple, then a Wiki allows students to collaborate online. If you are a 7 Habits of Highly Effective People follower, then a Wiki allows you to synergize.

23. Present at a conference. The best way to learn is to teach. Every year the College Board calls for presenters at their national AP Conference. The 2010 conference is in Washington, D. C. You will find that nothing prepares you more than teaching teachers. As you know, there's a difference between understanding what you read in a book and making real-world connections in real-time when students begin to ask you, "what if..." questions that make you evaluate information. Just performing the research for my presentations have enabled me to make a network or helpful professionals and resources that I will use for a life time.

24. Become an EconEdLink author. This is a rigorous process that will solidify your teaching presentation, knowledge, and pedagogy. Your lessons are critically reviewed by professionals who enrich the content of your plans. If you strive for excellence, develop one lesson and contribute it. The link to begin is here. Here's a warning. Once you write a plan, you will want to write more. You will find that the quality of your presentations skyrocket and your knowledge will deepen. There are over 620 plans as of this writing, but there are room for hundreds of others. All of the plans are here and they are FREE.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa. He is an EconEdLink.org author blogging at Mikeroeconomics. His iPod app, Econexamcram, helps students prepare for final exams in microeconomics.

Teaching Tips for AP Economics

Summary: More tips for enhancing student achievement.

On a previous blog, I listed 10 tips from the College Board and four of mine. I continue the list.

15. Read blogs from other AP Economics teachers. Here is a sample of the blogs I read through an RSS feed. MV=PQ, David Mayer, Jason Welker's Blog, Greg Mankiw's Blog, Marginal Revolution, and Gene Hayward.

On these blogs you will find lots of resources. For example, on Jason Welker's blog there are study guides that you can download so you don't have to reinvent the wheel. Also, during crunch times, you can extract PowerPoint lectures and assignments. On David Mayer's blog there are numerous how-to videos. On Tim Schilling's blog, MV=PQ, you will find thousands of links to poignant topics in economics.

16. Start a blog. You can use Blogger or Word Press. Another ancillary advantage of writing a blog is that you can pair with Amazon and make commission when readers buy blogs linked to your blog. Many teachers I know say that they don't have time to blog. But, blogging helps you to think efficiently and actually improve the speed at which you teach difficult concepts. I post my lectures to my blog and Facebook for students who want to review or who were absent. Blogging also gives your teaching a sense of authority and purpose.

17. Have study groups. Every Wednesday night, I meet my students from 6 pm until 7:30 pm to teach, reteach, and help them complete assignments. It's been during this time that many of my students have extended their learning by exploring topics of interest to them. If you are a rigor and relevance disciple, then this is exactly the kind of real world application mandated by the Quadrant D lessons. In my study group, Jing Hao once wrote a paper on dual labor markets that gained her entrance to Simpson College. It was during a study group that Rick Stammer agrued vehemently about how a tax would affect the marginal cost curve of a perfect competitor. Rick is now teaching principles of economics at Iowa State College in Ames, Iowa.

18. Use the College Board list serve for AP Microeconomics of AP Macroeconomics. David Anderson moderates the best exchange of ideas and pedagogy on the web. If you have not registered for the electronic discussion group, click here. The Council for Economic Education has a discussion board moderated by Kevin Smith here. You'll have to register first then you will receive updates as they are posted. These discussion boards are a great way to connect with other professionals. I have used the EDG for the College Board to have my questions answered.

19. Be like Ben Zander. Ben says to be a contributor. Find a way to add value to the class. Students often say they like the way I lecture because it's entertaining and instructive. They like my original explanations of topics. For example, when discussing the production possibilities curve, I show them an example of how an iPod can store 100 songs. If 50 of the songs are rap and 50 are classical cello, then if I want to add one more classical song, I will have to give up 1 rap. My examples are often rehashed from other bloggers like Tim Harford, the Undercover Economist.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author. Visit him at www.mikeroeconomics.blogspot.com

Production Possibilities Review for AP Economics

Summary: A guide to aid review of PPF or PPC.

A guide with two-minute drill questions over production possibilities curve is here.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author blogging at Mikeroeconomics. In his book, Steven Levitt makes the case that microeconomists have a more interesting career than macroeconomists.

Teaching Tips for AP Economics

Summary: Jim Spellicy on College Board.

Jim Spellicy teaches AP Economics at Lowell High School in San Francisco, California, and serves as an AP Reader and Table Leader. His tips for teaching AP Microeconomics and AP Macroeconomics are here.

Mr. Spellicy has over a decade of teaching experience in AP economics.

To his list, I would like to add:

11. Teaching economics is a learning process. Sometimes a student needs the whole semester to see how the concepts fit together. It is my practice to allow students the opportunity to grow over the course to demonstrate learning.

12. Give constant feedback and knowledge of results to learners. I emphasize how to use the models and interpret the models to teach the concepts. Often I have to teach the same concepts several times to a student while they are working on a homework problem. I use the analogy that I did not learn to parallel park the first time I tried. Many concepts in economics such as diminishing marginal returns take several attempts.

13. Recruit students who you work well with. This adds comfort to your classroom and a climate of mutual respect. Students produce good results when they feel good.

14. Allow students to disagree with you. When students argue with you they have the incentive to pursue the course content to a higher degree.

What teaching tips do you offer?

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa. He is an EconEdLink.org author. He believes in making marginal gains every day to pursue excellence.

Least Cost and profit maximization for AP Microeconomics

Summary: Equating the ratio of MPL and MPK to find least cost combination of resources. Equating ration of MRPL/Pl to MRPK/PK to 1.

Least Cost Rule and Profit Max
brought to you by Livescribe

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.

Federal Reserve Education for AP Economics

Summary: Flash animation multiple choice questions.

Click here. HT to Tim Schilling.

About everything you need to know about the FED is on this site.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa.

Crossword for AP Microeconomics

Summary: Be like Ben Bernanke and do a crossword puzzle.

The puzzle is here. TIME's man of the year is our Federal Reserve Bank Chairman who loves to work crosswords for relaxation.

This puzzle can be completed online with clues given on request. This is a great time waster if you need a breather before break.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author and blogs at Mikeroeconomics. Super Freakonomics is highly recommended.

Two-Minute Drill--Taxes

Summary: Drill over taxes.

As a warm up, have your students answer the following questions on a tax to correct a negative externality. My answers are: $320; $6; $50; $90; $150; 1.769.

If the demand curve were steeper, then the effect on quantity demanded would have been less. Students also have problems determining who bears the burden of the tax. In this case the buyer and seller bear the burden equally. The consumer pays $3 more for the good and the producer keeps $3 less.

In AP Microeconomics, the tax is placed on the producer.





About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author and blogs at Mikeroeconomics.

National Financial Literacy contest

"WASHINGTON – Embarking on a new partnership between the agencies, U.S. Department of the Treasury Secretary Tim Geithner and Department of Education Secretary Arne Duncan met today with students, educators and community leaders to promote strengthened financial capability among the nation's youth. They outlined the first step in this effort, the National Financial Capability Challenge, a national award program that aims to encourage financial education in schools across the country and recognize high-performing teachers, students, and schools.
Beginning today, teachers, schools, school districts, home-school parents, and youth groups can register online to participate. Starting in early 2010, a teacher tool kit developed by outside experts will be provided to all registered teachers to help them integrate financial topics into their curricula. Educators are encouraged to use these tools and to adopt their own innovative approaches to helping students increase their financial capability. The Challenge exam will be offered from March 15-April 2, 2010. All U.S. high-school aged students are encouraged to take part, and students from every participating school will have an opportunity to win awards.
For more information about the National Financial Capability Challenge, go here.

For more information about the FINRA Financial Capability Study, go here.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author blogging atMikeroeconomics.

Teaching 21st Century Skills in AP Macroeconomics

Summary: Jason Welker's lesson plan for visualizing economic growth using Web 2.0 tools. 21st Century skills.

How do you teach in the 21st Century?

The slide, 21st Century Learning, was presented at the last in-service at Muscatine High School by Diane Campbell, Assistant Principal of the Year in Iowa.

In Jason Welker's lesson, Visualizing economic growth, I counted 10 of the skills listed on the right side of the PowerPoint slide. In addition, Mr. Welker included the use of Photo Story 3 for teaching the technology component. In this lesson, students are asked to visualize "How does economic development differ from economic growth?"

This lesson is an excellent example of teaching shifting the learning process to a learner-centered environment.

If you like this plan, there are more on his blog.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa. He is an EconEdLink.org author blogging at Mikeroeconomics.

How Many Workers to Hire for AP Microeconomics

Summary: Calculate number of workers for a firm in the perfectly competitive resource market.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also blogs at Mikeroeconomics. He is currently reading Super Freakonomics and What the Dog Saw, by Malcolm Gladwell.

Two-Minute Drill Total Revenue and Cost Curves

Summary: Total revenue and total cost questions for review.

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All answers are "true".

Students often do not understand why marginal revenue equals marginal cost maximizes profit. This graph shows that the distance between total revenue and total cost is the greatest so profit is the greatest. At point Q1, the slopes of both the TR and TC curves are equal so MR = MC.

The TC curve intersects the Y-axis at a point higher than zero. The firm has both fixed and variable costs.

As more workers are hired, workers become specialized and fixed costs are spread out over a larger amount of output. As a result, the TC curve becomes flatter.


About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA.

Solow Growth Model in AP Economics

Summary: Teaching teachers to teach. Solow Growth Model.

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Can the Solow Growth Model be applied to education?

Let's assume that the production function takes the form Y = F(K,L,H) where H is the ratio of skilled labor to unskilled labor. If this ratio is "1" then the economy approaches the steady-state shown in this graphic.

If society invests in more education, then both the investment and income curves will shift up and society will reach a higher steady state.

Both investment and income curves will shift up if more capital, (computers?) are given to each worker or student.

Just throwing computers at workers won't increase productivity. Workers must be taught. To paraphrase one economist, "When workers are given new technology, they use it in old ways." I think investment in best teaching practices with the best teachers will lead to continued growth. In other words, we should teach teachers to teach.

This is the goal of the Council for Economic Education. The goal is to give teachers the tools and the training to become effective in their classrooms.




About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author.

Sale on Economics Materials

Summary: 50% off. Grab deals.

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Everything on the Council for Economic Education website is on sale at 50%. One exclusion applies (Thinking Economics.) The sale runs one more week.

At the national convention in October, there were publications on such relevant topics as globalization. Economics predicts that as the price falls, consumers buy more. Prove the law of demand correct and navigate to the CEE store.

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author and blogs at Mikeroeconomics.

A Faster Approach to Finding the Gini Coefficient

Summary: A faster way to find the Gini Coefficient



About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.

Winners and Losers From Falling Dollar

Summary:

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New York Times article. A score card.

What happens when the USD depreciates? Find out who wins and who loses here.

A salute goes to Kathleen Jensen for the tip.

This graph can be used in AP Macroeconomics when discussing aggregate demand and international trade.

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa. Iowa is buried under winter weather.

How to Graph the Lorenz Curve in AP Microeconomics

Summary:

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Graphing the Lorenz Curve. Calculating the Gini Coefficient.



The College Board lists that the Lorenz Curve should be taught in AP Microeconomics. This PowerPoint video uses simple data to show how to plot the Lorenz Curve and estimate the Gini Coefficient.

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.

Excess Capacity in AP Microeconomics

Summary: Monopolistic competitors operate at an X-inefficient point on their ATC.



A restaurant seldom is packed to capacity. A hallmark characteristic of a firm in a monopolistically competitive market is excess capacity. Pizza Ranch, for example, might have several seats a table empty. A profit maximizing firm in the mono comp industry would be operating at a point on their ATC higher than a perfect competitor. This video gives a brief description of a mono comp firm with excess capacity. This blog is intended for AP Microeconomics.

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author, and also publishes the Mikeroeconomics and iMacroeconomics VB blogs.

Teaching Creativity in AP Macroeconomics

Summary: Technology is changing what me must teach. Teaching creativity for the 21st Century

Abraham Maslow postulated that human behavior can be modeled by a pyramid. In his model, basic needs are fulfilled first then more aesthetic needs such as acceptance are pursued. When a person reaches the top of this pyramid, the person is self-actualizing. As environmental dynamics change, a person moves up and down the pyramid seeking first to satisfy basic needs then higher wants such as love.

What happens when basic need satisfaction has little or no marginal cost of consumption? In other words, how do humans behave when there is an abundance of food, clothing, and shelter?

In Dan H. Pink's book, A Whole New Mind, Mr. Pink opines (I'm summarizing) that consumers will want value added to their life's in the form of "high touch" or greater artistic expression.

For example, Wal-Mart shoppers no longer want cheap clothing, but designer clothing. Automobiles are not only reliable, but safer and more stylish. I examined my own purchase of an iPod Touch and concluded that I bought the iPod for more reasons than the music I could listen to while working out. I bought the Touch because it was cool. It is for this reason that a "master of fine arts is now one of the hottest credentials in the world." (Pink, page 34.)

Technology has driven the cost of production to its marginal cost. Everything in an iPod is made in competitive markets according to the chief economist at Google, Hal Varian. Everything except the concepts or ideas about design and delivery of digitized products like music and movies. The concepts are made in the USA.

In a society where products are driven down to their marginal cost, only firms that can differentiate their products will retain profits in the long run. Firms wishing to remain competitive must constantly strive to innovate and add artistic value to their products or else find that the price of their product is being competed away in both domestic and foreign markets.

A goal for US schools, then is to teach creativity so our students will be able to compete in a global economy. Educational reformer, Willard Daggett, has stressed that learning should have rigor and relevance to the learner so as to develop skills such as creativity. There is no doubt in my mind that creativity is a 21st Century skill. How do we begin to teach creativity in AP Macroeconomics?

Perhaps, you will find, A Whack on the Side of the Head, a springboard in your life to being more creative. I found Thinkertoys to be brilliant. In this outstanding TED Talk, you will learn how play sparks creativity.

In the best-selling book, The World is Flat, author Thomas Friedman, makes the point that technology has changed the landscape of the world. As educators, we must prepare our students for the work place with skills that can not be digitized and competed away. Creativity is one of those skills.

I look forward to your comments.

About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, Iowa. In 2008, Mr. Fladlien was a finalist for ISEA Teacher of the Year.

Two-Minute Drill--Mono Comp

Summary: A worksheet to drill your students on long run mono-comp equilibrium.

The link is here.

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About the Author: Mike Fladlien is an AP Economics teacher from Muscatine High School in Muscatine, IA. He is an EconEdLink.org author bloggin at Mikeroeconomics.