Application of graphical software in teaching of microeconomics--lecture monopoly.

Herceg, Tomislav ; Jakovic, Bozidar ; Galetic, Fran 等

1. INTRODUCTION

Students and teachers of microeconomics often find themselves jammed between two confronted positions: one of a teacher, who tries to simplify and illustrate complex microeconomic phenomena using long mathematical deductions, lots of graphical representations and some exercises to prove it, and one of the students, who can hardly grasp all the materials that are to be taught and examined afterwards. Hence it is crucial to use time and concentration in the best possible way. In this paper we will try to simplify some parts of the lecture explaining monopoly.

We made an investigation in the period from 2005-2008 on nine groups of students randomly taken from the overall students of the first year of business economics. In four of these groups e-learning techniques were used and these groups yielded significantly better results (non-elarning groups: average grade bellow 2.9, 1 being the worst and 5 the best, while e-learning groups all had the average grade above 3.3. Average of the average grades in non-learning groups was 2.7, and in e-learning groups 3.7)

In this paper we present techniques that were used in the e-learning groups. This approach would not be applicable for students with good calculus background, but for the students with poor knowledge of both calculus and economics. However, this approach would be applicable for business school and short degree (programme that last for only 2 years or even less) students who do not intend to deepen their theoretic background, but try to achieve practical knowledge as soon as possible.

2. LITERATURE OVERVIEW

Sadler-Smith in his holistic research described learning methods. He said that learning methods can be grouped into at least three categories: (1) autonomous: guided reading; programmed instruction (distance learning, computer based learning), (2) collaborative: games/simulations; projects; case studies; experiential; role playing and (3) dependent: lecture; seminar (Sadler-Smith 1996). We are interested in the latter one for now; how to use new technologies in order to achieve the main education goal, comprehension.

Bose described one of the e-learning pilot projects that resulted in flexible time used for teaching and student oriented techniques that preserve the quality of education while increasing its productivity (Bose 2003).

Galetic, Herceg and Jakovic have investigated how to use other teaching software in order to simplify teaching of microeconomics in several fields, with examples given for the complex deductions and how they should be taught. They have as well shown how to use graphical applications in order to explain a concept of concave and quasi-concave functions and its layer curves. (Galetic et al. 2008)

Littig in his paper focuses on eLearning projects supported by the European Leonardo da Vinci programme and gives recommendations for the future development. The innovation itself is not a technological innovation, but only application of the already developed technologies for pedagogical purposes; hence it is called pedagogical innovation (Littig 2006).

Cardinali says that "the interface that allows interaction between end-users and the computer plays a vital role in the effectiveness by which certain system functions. He also states that it is crucial to enable students to use and understand software which make learning process easier more effective since it saves time and increases productivity (Cardinali 1994).

El-Deghaidy and Nouby in their paper on the development of implementation of e-learning techniques in the Egyptian education system made a research using test group and control group of students. Their results show that technology can help in teaching, but it is also important to use the right techniques and to try to eliminate those which are ineffective and to much time consuming. They were among the first to show the relevance of picking up the right technique and that it is not enough to have technology necessary to even begin with the teaching progress (El-Deghaidy and Nouby 2008).

Graham in his paper investigates the history of e-learning and technologies used at the time. He concludes e-learning does not have to increase to quality of the learning process, but the increase in the quality of the e-learning techniques and receptiveness of the learner do have a strong impact on the learning process and make it faster and more amusing (Graham 2004).

Harvey and Beards made a thorough survey of the Scottish higher education system and their use of e-learning. Authors concluded that in order to have an e-learning system that functions, universities have to, after investing in technology, invest in education of the teaching staff how to use it as well as to develop new pedagogical approach (Harvey and Beards, 2003).

3. MONOPOLY LECTURE

Lecturer begins the lecture with informal explanation of the basic tools needed to use the software (Graph 4.3. and Mathematica 5.2.). After explaining the main concepts, the lecturer begins to draw certain monopoly allowing students to choose demand functions and cost functions. It makes the process interactive and thus more interesting.

If students choose demand P = 10 - Q (like students of the authors' of this paper did), teacher starts to draw it, and using some of the software mentioned, deduct marginal revenue. Then students suggest some total cost (let it be TC = 5 + 0.2QA3). Again we find marginal and average costs using Mathematica (if it were more complex than in this case) and put it on the same graph (Fig. 1.)

After this is done the lecturer starts to deduct the equilibrium state and explain it intuitively. Firstly it has to be shown what would be the equilibrium in the perfectly competitive case and then discuss what would happen if demand flattens. It is a good way to begin to explain Lerner's index, but it is not the part of this paper.

Teacher now shades the areas of interest that they together identified as interesting (Fig. 2.). After that the shaded area is calculated (students will very often forget to deduct fixed costs--now it would be useful to show why this should not be omitted). Students would have to be able to know this number represents the profit of monopolist. Critical points can be added and calculated by the software as well.

Following the lecture, teacher wants to show it is not the only way of finding the profit area. Instead of finding areas under curves, one can find the profit rectangle that corresponds to the previously obtained profits (Fig. 3.). Finally, it will be shown these areas are equal and it holds for any demand and cost functions when they change coefficients in equations.

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4. CONCLUSION

The aim of this paper was to show the application of e-learning techniques in teaching of microeconomics. Making a survey on 9 different students groups and applying techniques here presented on 4 of them, we found out that on the average e-learning groups had the average grade by a whole 1 grade above the non-e-learning groups. We present a part of one of the lectures used in this process, crucial for understanding of the market structures.

The lecture proceeds as follows: introduction of the main concepts and basics of the software. It is followed by simple example after which students give their own examples. Collaborative work of the lecturer and the student raises the students' level of attention and their comprehension of the subject. Students are also encouraged to use software at home in order to prolong the learning process making it more thorough.

This approach, however, is much more applicable for students with weaker calculus background, like those who attend business schools and short business courses. Advanced students find this approach too straightforward, and thus less interesting. For them other teaching methods should be used.

5. REFERENCES

Bose, K. (2003), An e-learning experience--a written analysis based on my experience in an e-learning pilot project. Campus-Wide Information Systems, Volume: 20 Issue: 5; Research paper.

Cardinali, R. (1994). Productivity Improvements through the Use of Graphic User Interfaces. Industrial Management & Data Systems; Volume: 94 Issue: 4. pp. 3

El-Deghaidy, H., Nouby, A. (2008), Effectiveness of a blended e-learning cooperative approach in an Egyptian teacher education programme, Computers & Education 51 (2008) 988-1006

Galetic, F., Herceg, T., Jakovic, B. (April 2008): E-learning and Its Application to Microeconomics, WSEAS Transactions on Information Science & Applications, Issue 4, Volume 5

Graham, G. (2004): E-learning: a philosophical enquiry, Education + Training, Volume:46, Number:6/7,pp.308-314

Harvey and Beards (2003): E-learning in Scottish further and higher education, Education + Training, Volume: 46, Number: 6/7, pp.353-360

Littig, P. (2006), New media-supported learning today and tomorrow: recommendations for the next generation of education and training concepts supported by new learning media. Industrial and Commercial Training, Volume: 38 Issue: 2.

Sadler-Smith, E. (1996), Learning styles: a holistic approach. Journal of European Industrial Training, Volume: 20 Issue: 7; Research paper.