2026/2027 - Economics 3e Discussion QuestionsEconomics
Instructor-Notes
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Page 1 of 115 Economics 3e Discussion Questions Instructor-Notes.pdf
Economics 3e Discussion Questions Instructor-Notes.pdf
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Instructor-Notes
3e Discussion Questions Instructor-Notes.pdf Page 2 of 115
2
HOW TO USE THIS MANUAL
These discussion questions with instructor notes were written as authentic assessments, leading
students beyond route memorization to investigations of economics topics and concepts.
Rubrics for LMS-hosted and in-class discussions can be found in Appendix A and B. These rubric
templates are licensed under CC BY and can be edited to suit your course.
The discussion questions are Copyright 2023 by Rice University, All Rights Reserved. We ask that
this manual not be posted online or shared outside the classroom to preserve the integrity of
these questions for future courses and students. Questions may be modified to align with course
parameters.
DISCUSSION QUESTION TYPES
Discussions have been organized into three different categories. Categories may vary between
chapters depending on what best fits the topics in that chapter.
Economics and You
These discussion questions ask students to connect topics from the chapter to their everyday
life, experiences, and/or future careers.
For example, students might identify how division of labor is at work in their future career fields.
Economics and Theory
These discussions unpack concepts in economic theory, asking students to explain and apply
principles.
For example, students may be asked to explain Adam Smith’s concept of the “invisible hand” and
then describe how markets can allocate resources in a way that they go to those who value them
most.
Economics and Policy
These discussions explore how economic policy impacts facets of everyday life.
For example, students might research a price control that has been implemented in the real
world and analyze the benefits and drawbacks of that control.
This file is copyright 2023, Rice University. All Rights Reserved.
We ask that this manual not be posted online, used commercially, or shared outside the classroom to preserve the integrity of these
questions for future courses and students.
Page 2 of 115 Economics 3e Discussion Questions Instructor-Notes.pdf
Economics 3e Discussion Questions Instructor-Notes.pdf
,2026/2027 - Economics 3e Discussion QuestionsEconomics
Instructor-Notes
3e Discussion Questions Instructor-Notes.pdf Page 3 of 115
3
TABLE OF CONTENTS
Chapter 1: Welcome to Economics
Economics and You: Course Introduction
Economics and You: Division of Labor
Economics and Theory: Economy Organization
Chapter 2: Choice in a World of Scarcity
Economics and You: Opportunity Cost of an Activity
Economics and You: Overshadowed Opportunity Cost
Economics and Theory: Shape of PPT
Economics and Theory: Invisible Hand
Chapter 3: Demand and Supply
Economics and Theory: Counterintuitive Goods
Economics and Theory: Allocation of Resources
Economics and Policy: Price Controls
Chapter 4: Labor and Financial Markets
Economics and You: Paying Outside of Equilibrium
Economics and You: Intertemporal Decision Making
Economics and Policy: Labor Market Regulation Challenges
Economics and Policy: What is a living wage?
Chapter 5: Elasticity
Economics and Theory: Expectations for Elasticity
Economics and Theory: Elasticity for Similar but Not Identical Goods
Economics and Theory: Impracticality of Polar Cases of Elasticity
Chapter 6: Consumer Choices
Economics and You: Changes in Utility from Income
Economics and You: Demonstrate Diminishing Marginal Utility
Economics and Theory: Marginal Utility vs. Marginal Utility per Dollar
This file is copyright 2023, Rice University. All Rights Reserved.
We ask that this manual not be posted online, used commercially, or shared outside the classroom to preserve the integrity of these
questions for future courses and students.
Page 3 of 115 Economics 3e Discussion Questions Instructor-Notes.pdf
Economics 3e Discussion Questions Instructor-Notes.pdf
, 2026/2027 - Economics 3e Discussion QuestionsEconomics
Instructor-Notes
3e Discussion Questions Instructor-Notes.pdf Page 4 of 115
4
Chapter 7: Production, Costs, and Industry Structure
Economics and You: Demonstrate Explicit and Implicit Costs in Your Daily Life
Economics and You: Explain Why There Are No Fixed Costs in the Long Run
Economics and Theory: Methods to Calculate Labor
Economics and Theory: Real World Firm Economies of Scale
Chapter 8: Perfect Competition
Economics and You: Unrealistic, Yet Useful Model?
Economics and You: Real World Business Shutting Down, But Not Exiting
Economics and Theory: Long Run Zero Profit, Why Open?
Chapter 9: Monopoly
Economics and You: Real Life Monopoly with Benefits and Drawbacks
Economics and You: Real Life Monopoly with Type and Barrier
Economics and Theory: Monopolist Tradeoff Between Price and Quantity
Chapter 10: Monopolistic Competition and Oligopoly
Economics and You: Using Advertising to Change Demand Curves
Economics and Theory: Differentiated Products
Economics and Theory: Game Theory Application
Chapter 11: Monopoly and Antitrust Policy
Economics and Policy: Restrictive Practices, Unfair or Ensuring Fairness?
Economics and Policy: Mergers and Acquisitions
Economics and Policy: Regulation Tools, Do They Cover Everything?
Chapter 12: Environmental Protection and Negative Externalities
Economics and You: Cause and Individual Example of Market Failure with Negative
Externality
Economics and Policy: Benefits and Drawbacks of Environmental Tools
Economics and Policy: Challenges of Completely Eliminating Pollution
This file is copyright 2023, Rice University. All Rights Reserved.
We ask that this manual not be posted online, used commercially, or shared outside the classroom to preserve the integrity of these
questions for future courses and students.
Page 4 of 115 Economics 3e Discussion Questions Instructor-Notes.pdf
Economics 3e Discussion Questions Instructor-Notes.pdf
Instructor-Notes
3e Discussion Questions Instructor-Notes.pdf Page 1 of 115
Page 1 of 115 Economics 3e Discussion Questions Instructor-Notes.pdf
Economics 3e Discussion Questions Instructor-Notes.pdf
,2026/2027 - Economics 3e Discussion QuestionsEconomics
Instructor-Notes
3e Discussion Questions Instructor-Notes.pdf Page 2 of 115
2
HOW TO USE THIS MANUAL
These discussion questions with instructor notes were written as authentic assessments, leading
students beyond route memorization to investigations of economics topics and concepts.
Rubrics for LMS-hosted and in-class discussions can be found in Appendix A and B. These rubric
templates are licensed under CC BY and can be edited to suit your course.
The discussion questions are Copyright 2023 by Rice University, All Rights Reserved. We ask that
this manual not be posted online or shared outside the classroom to preserve the integrity of
these questions for future courses and students. Questions may be modified to align with course
parameters.
DISCUSSION QUESTION TYPES
Discussions have been organized into three different categories. Categories may vary between
chapters depending on what best fits the topics in that chapter.
Economics and You
These discussion questions ask students to connect topics from the chapter to their everyday
life, experiences, and/or future careers.
For example, students might identify how division of labor is at work in their future career fields.
Economics and Theory
These discussions unpack concepts in economic theory, asking students to explain and apply
principles.
For example, students may be asked to explain Adam Smith’s concept of the “invisible hand” and
then describe how markets can allocate resources in a way that they go to those who value them
most.
Economics and Policy
These discussions explore how economic policy impacts facets of everyday life.
For example, students might research a price control that has been implemented in the real
world and analyze the benefits and drawbacks of that control.
This file is copyright 2023, Rice University. All Rights Reserved.
We ask that this manual not be posted online, used commercially, or shared outside the classroom to preserve the integrity of these
questions for future courses and students.
Page 2 of 115 Economics 3e Discussion Questions Instructor-Notes.pdf
Economics 3e Discussion Questions Instructor-Notes.pdf
,2026/2027 - Economics 3e Discussion QuestionsEconomics
Instructor-Notes
3e Discussion Questions Instructor-Notes.pdf Page 3 of 115
3
TABLE OF CONTENTS
Chapter 1: Welcome to Economics
Economics and You: Course Introduction
Economics and You: Division of Labor
Economics and Theory: Economy Organization
Chapter 2: Choice in a World of Scarcity
Economics and You: Opportunity Cost of an Activity
Economics and You: Overshadowed Opportunity Cost
Economics and Theory: Shape of PPT
Economics and Theory: Invisible Hand
Chapter 3: Demand and Supply
Economics and Theory: Counterintuitive Goods
Economics and Theory: Allocation of Resources
Economics and Policy: Price Controls
Chapter 4: Labor and Financial Markets
Economics and You: Paying Outside of Equilibrium
Economics and You: Intertemporal Decision Making
Economics and Policy: Labor Market Regulation Challenges
Economics and Policy: What is a living wage?
Chapter 5: Elasticity
Economics and Theory: Expectations for Elasticity
Economics and Theory: Elasticity for Similar but Not Identical Goods
Economics and Theory: Impracticality of Polar Cases of Elasticity
Chapter 6: Consumer Choices
Economics and You: Changes in Utility from Income
Economics and You: Demonstrate Diminishing Marginal Utility
Economics and Theory: Marginal Utility vs. Marginal Utility per Dollar
This file is copyright 2023, Rice University. All Rights Reserved.
We ask that this manual not be posted online, used commercially, or shared outside the classroom to preserve the integrity of these
questions for future courses and students.
Page 3 of 115 Economics 3e Discussion Questions Instructor-Notes.pdf
Economics 3e Discussion Questions Instructor-Notes.pdf
, 2026/2027 - Economics 3e Discussion QuestionsEconomics
Instructor-Notes
3e Discussion Questions Instructor-Notes.pdf Page 4 of 115
4
Chapter 7: Production, Costs, and Industry Structure
Economics and You: Demonstrate Explicit and Implicit Costs in Your Daily Life
Economics and You: Explain Why There Are No Fixed Costs in the Long Run
Economics and Theory: Methods to Calculate Labor
Economics and Theory: Real World Firm Economies of Scale
Chapter 8: Perfect Competition
Economics and You: Unrealistic, Yet Useful Model?
Economics and You: Real World Business Shutting Down, But Not Exiting
Economics and Theory: Long Run Zero Profit, Why Open?
Chapter 9: Monopoly
Economics and You: Real Life Monopoly with Benefits and Drawbacks
Economics and You: Real Life Monopoly with Type and Barrier
Economics and Theory: Monopolist Tradeoff Between Price and Quantity
Chapter 10: Monopolistic Competition and Oligopoly
Economics and You: Using Advertising to Change Demand Curves
Economics and Theory: Differentiated Products
Economics and Theory: Game Theory Application
Chapter 11: Monopoly and Antitrust Policy
Economics and Policy: Restrictive Practices, Unfair or Ensuring Fairness?
Economics and Policy: Mergers and Acquisitions
Economics and Policy: Regulation Tools, Do They Cover Everything?
Chapter 12: Environmental Protection and Negative Externalities
Economics and You: Cause and Individual Example of Market Failure with Negative
Externality
Economics and Policy: Benefits and Drawbacks of Environmental Tools
Economics and Policy: Challenges of Completely Eliminating Pollution
This file is copyright 2023, Rice University. All Rights Reserved.
We ask that this manual not be posted online, used commercially, or shared outside the classroom to preserve the integrity of these
questions for future courses and students.
Page 4 of 115 Economics 3e Discussion Questions Instructor-Notes.pdf
Economics 3e Discussion Questions Instructor-Notes.pdf
