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Instructor's Manual.rar
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LECTURE TIPS
Chapter 1 – IntroductionDecisions about public policy cannot be made on the basis of economicanalysis alone. Value judgments are alsorequired. The
purpose of the beginningpart of Chapter 1 is to make this point, and to try to motivate the students tothink hard about the values they bring to bear on public policy problems.Chapter 2 – Toolsof Positive AnalysisThis chapter begins with the role of theory. The issue used as an illustration works wellin the classroom—do tax cuts create stronger work incentives? This is a good opportunity to review budgetconstraints and indifference curves by presenting the labor-leisure model andit helps to have the model in front of the students when you discuss substitutionand income effects. The model ispresented in chapter 18 in great detail, and you might want to encouragestudents to go ahead and read that chapter if they need more information thanwas provided in class, but it works well to let students see the kind of toolsthey’ll be using early in the course. You might want to use a handout and give students a problem like this,which you can ask them to solve or you can solve with them in class.
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