ABSTRACT
This chapter addresses the core of economics-the essential content that every citizen should know well. The ability to think economically is fundamental to being able to understand and think critically about human behavior. We begin by discussing the context of economic education today. We wonder whether low levels of economic literacy may be linked to declines in economic freedom in the United States. Next, we move on to improving the teaching of economics. We explain the basic principles of economic thinking, illustrating how these principles can help young adults understand the behavior of individuals in the private sector and in government. Two sample lesson plans, as well as other resources, are included for teaching high-school students to think like economists. Finally, we address some of the problems in measuring economic thinking and describe some promising approaches. Two test prototypes are presented.
