Thoughts On Teaching Fundamental of Economics

Abstract

As an instructor in economics, what we have to teach or how we have to teach, it is always our concern in the classroom. This paper attempts to address some thoughts associated with: "What to teach?" rather than "How to teach?" in the foundation of Economics. Lack of a precise definition for the discipline and frequent assignment of technical meanings to terms of common discourse can be confusing. Economics instructions, being conducted with scarce means relative to the desirable objectives represent an economic problem although instruction is seldom considered in this light. Explanation typically employs metaphors, but there is no currently satisfactory explanation of how these "work". Another difficulty is that metaphors illuminate in some ways they conceal in others. The efficiency conditions associated with the perfectly competitive market model are seldom adequately discussed nor is there any guarantee that dynamic processes will establish a new equilibrium if the original one is disturbed. It is useful to highlight the fact that economics is part of the general culture and, therefore, there are analogues in other fields. The circular flow model represents an analogy with the circulation of the blood in human body and can be employed useful in establishing a frame of reference for the discussion of Monetarist and Keynesian approaches to Monetarist and Keynesian stabilization policies.