Active learning ideas
This topic demystifies the work of economists, moving beyond the stereotype of people who just predict the stock market. Students learn the vital distinction between positive economics (what is) and normative economics (what should be). This distinction is a cornerstone of the NCCA specification, as it helps students evaluate policy arguments and media reports critically. They also explore how economists use simplified models to understand a complex world.
Activity 01
Set up stations with news clippings, tweets, and political speeches. Students rotate in groups to highlight positive statements in one color and normative statements in another, explaining their reasoning.
What is the difference between positive and normative economics?
Activity 02
Students work in pairs to create a simple economic model predicting canteen queues based on one variable (e.g., price of chicken rolls). They must list their assumptions and discuss why the model might fail in reality.
How do economists use models to explain behaviour?
Activity 03
Provide students with a graph showing a correlation (e.g., ice cream sales and shark attacks). They discuss in pairs why data can be misleading and why economists must be careful with 'post hoc' fallacies.
What are the limitations of economic data?
A few notes on teaching this unit
Watch Out for These Misconceptions
Economic models are useless because they are too simple.
Models are simplified to highlight specific relationships. Using a 'map' analogy in a group discussion helps students see that a map is only useful because it leaves out unnecessary details like every single tree.
Positive statements are always true.
A positive statement is one that can be tested or proven false, not necessarily one that is correct. Sorting exercises help students distinguish between 'testable' and 'opinion-based' claims.
Methods used in this brief
Scarcity and Choice
Students explore the fundamental economic problem of scarcity and how it forces individuals, firms, and governments to make choices. Opportunity cost is introduced as a key concept.
8 methodologies
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An examination of sustainable development and how economic growth impacts the environment and society. Students evaluate the trade-offs between current consumption and future resources.
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