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International Review of Economics Education 12 (2013) 48–59

Contents lists available at SciVerse ScienceDirect

International Review of Economics

Education
journal homepage: www.elsevier.com/locate/iree

An exploration of Robert Frank’s ‘The Economic Naturalist’

in the classroom
Wayne Geerling
Department of Economics, Penn State University, 306 Kern Building, PA 16801, United States

A R T I C L E I N F O A B S T R A C T

Article history: This paper evaluates a pedagogical method pioneered by Robert

Available online 8 April 2013 Frank: ‘The Economic Naturalist Writing Assignment’, in which
students pose an interesting question based on an event they have
JEL classification: personally observed, then use economic principles to solve the
A22 question in no more than 500 words—free of algebra, graphs and
complex jargon. The paper concludes with a sample of questions
Keywords:
(and answers) posed by students when I piloted this writing
Economic Education
Robert Frank assignment. It is hoped that this paper will serve as a practical case
Student engagement study for aspiring lecturers who wish to create a more stimulating
Everyday Economics learning environment.
Pedagogy ß 2013 Elsevier Ltd. All rights reserved.

1. Introduction

‘Most students who take introductory economics seem to leave the course without really having
learned even the most important basic economic principles’, laments Robert Frank in ‘The Economic
Naturalist Writing Assignment’, published in the Journal of Economic Education (Frank, 2006, p. 58). In
fact, when students are given tests designed to assess their knowledge of basic economics six months
after taking the course, they do not perform significantly better than others who never took an
introductory course (Hansen et al., 2002). Wherein lies the problem? How do lecturers overcome this?
This paper will demonstrate the importance of writing assignments in promoting greater economic
literacy. It is well established in the academic literature that writing assignments improve student
learning of economic principles (Greenlaw, 2003; Dynan and Cate, 2008). ‘. . .writing is a tool of
discovery, a way of working through ideas that you don’t fully understand. In other words, writing is a
positive-sum game. When you write, you don’t merely put down what you already know; rather you
end up knowing more’ (Greenlaw, 2003, p. 61). Regular, structured writing assignments are important
in developing the skills needed for self-directed learning (Dynan et al., 2008).

E-mail address: wag11@psu.edu.

1477-3880/$ – see front matter ß 2013 Elsevier Ltd. All rights reserved.
http://dx.doi.org/10.1016/j.iree.2013.04.008
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W. Geerling / International Review of Economics Education 12 (2013) 48–59 49

Robert Frank’s ‘The Economic Naturalist Writing Assignment’ is a form of writing intervention, in
which students are asked to pose an interesting question about some pattern of events or behavior
they have personally observed (a real life event), then use basic economic principles to solve the
question in no more than 500 words (Frank, 2006, 2007). In 2010, I piloted this assignment in my
classroom, and this paper provides a sample of questions (and answers) posed by my students. This
writing assignment has practical benefits for teaching economics through real world examples and/or
to students who are non-specialists. Furthermore, giving students more responsibility for framing
questions is a key attribute of thinking like an economist and developing higher order learning skills
(complex application, analysis and synthesis) in line with Bloom’s taxonomy (Bloom, 1956). This is a
pre-requisite for self-directed learning. Finally, this paper can serve as a practical case study for
lecturers interested in creating a more stimulating, interactive classroom environment.
Introductory economics classes have limited impact on economic understanding (Rebeck and
Walstad, 2002, 2008). One cause of this is that most courses try to cover too many concepts, with the
result that not enough attention or time is devoted to mastering important threshold concepts (Frank,
2007). The idea that less is better in teaching economics is not new (Becker, 2004). Getting economists
to agree on a list of threshold concepts which should be mandatory in an introductory course creates a
new dilemma (Frank, 2007). The most important thing, according to Frank, is that lecturers begin with
a well articulated short list of principles, and then illustrate and apply each principle in the context of
simple examples drawn from familiar settings (Frank, 2006). These principles are revisited in different
contexts later in the course. Students then practice the principle by using it to solve simple problems
taken from their own observations, and ultimately, to pose original questions which are answered by
the same basic principles (Frank, 2006).

2. The economic naturalist

Frank uses the economic naturalist writing assignment in his introductory economics courses.
Students formulate their own question based on a real life observation and are encouraged to write
free of algebra, graphs and complex terminology, in a manner understandable by a relative who has
never studied economics—the so-called Grandma test (Frank, 2007; Bray and Leape, 2008; Cowen,
2008).
The term ‘economic naturalist’ comes from an analogy Frank makes with someone who has taken
an introductory course in biology: what types of questions would they be able to answer afterwards?
‘If you know a little evolutionary theory, you can see things you didn’t notice before. The theory
identifies texture and pattern in the world that is stimulating to recognise and think about’ (Frank,
2007, pp. 7–8).
Individual students may prefer particular learning styles, such as visual, aural or conceptual. Frank
adopts the ‘narrative theory of learning’, which claims that the human brain absorbs information in
narrative (story telling) form easier than in abstract form (equations, graphs and theory). This can be
traced to the evolution of our species as storytellers and the importance of narrative in a child’s
learning experience (Carter, 1993; Carter and Doyle, 1996; Doyle, 1997). His writing assignment,
therefore, is a practical application of this approach. Students who come up with an interesting
question are more likely to have fun and devote energy to the task, and talk to others about it, which
reinforces the practical aspects of what they learned. The learning is now internalised and great stories
are usually remembered forever (Frank, 2007).
An important issue for any academic contemplating the adoption of this assignment is: how should
this task be designed? Frank drills students in the use of concepts in class, then poses additional
questions that require further application in similar context (Frank, 2006, p. 61). Students are given
instructions relating to word limit, style of writing and use of economic principles to describe a real life
event (all of which are highlighted above). Otherwise, they are left to their own devices. Frank provides
no additional guidance or support to his students with respect to the choice of topic, structure of the
essay or the mechanics of writing. His learning environment is unstructured. This is self-directed
learning in line with the higher-order learning skills as described in Bloom’s taxonomy. Frank does
concede ‘. . .some students appear to struggle in their attempts to formulate a suitable question for
their first paper’ (Frank, 2006, p. 65). This is hardly surprising given students’ relative inexperience
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50 W. Geerling / International Review of Economics Education 12 (2013) 48–59

with higher order learning and the assessment of those skills (Dynan and Cate, 2008, p. 83). The
findings of Dynan and Cate indicate that students who are not well-prepared for self-directed learning
benefit from a structured learning environment.1 Furthermore, strong structures and guidance will
enhance student performance on average (Dynan and Cate, 2008, pp. 82–83). This structure could take
the form of a lecturer-generated question; the use of a peer review system, in which students help
each other develop a suitable topic; or the lecturer requesting students to submit an essay proposal,
which is reviewed then handed back. Lecturers using this assessment in introductory level classes
should be aware of these caveats. Dynan and Cate recommend that lecturers carefully assess the
ability of their class, define the learning level students are expected to reach, then give students
regular writing assignments that allow them to practice both lower-order and higher-order skills
(Dynan and Cate, 2008, p. 82).
The economic naturalist writing assignment can be seen as a means of re-orientating introductory
classes: giving students more opportunities to practice economics (Hansen et al., 2002). I adopted this
assignment as part of a new 2nd year elective I introduced at La Trobe University in Melbourne,
Australia, in 2010: ‘Economics of Everyday Life’. The aims of the assignment were shamelessly
borrowed from Frank and encouraged students to:

1. Think like an Economist

2. Explain the intuitive logic of Economics
3. Apply economic reasoning to comprehend and solve problems in everyday life
4. Better understand the complexities of human behavior

‘Economics of Everyday Life’ was aimed at different streams of students: those undertaking a
degree or considering a major in economics, as well as non-specialists from different faculties opting
for an elective. All students studying business at La Trobe University (or any of its derivates) take
‘Introductory Microeconomics’ in their first year, yet as we know from the work of Frank, their
understanding of threshold concepts cannot be taken for granted. A simple theory refresher was
provided at the start of the subject and parallel workshops organised in week 1 of the semester for
students who felt they needed additional help, to ensure that all students understood the basic
microeconomic concepts, upon which the subject was built.
All students were required to write at least one essay for the semester following the guidelines set
by Frank with two slight modifications. First, the essay length was extended to a maximum of 750
words. Second, students were given greater flexibility in choosing a question. This form of writing
assignment is not used in any other economics subject at La Trobe University and many students were
ill-prepared for self-directed learning at first. As a compromise, students were allowed to ‘draw on
your own everyday experience and the interactive mediums used to teach the subject (music, film,
television and internet) to develop a question’ (ECO2EEL subject outline: semester 2, 2010, p. 8). One
such weblog: From Abba to Zeppelin, Led provides lyrics and follow-up questions that can be used as the
basis for an assignment or essay. Many students chose to use these mediums in developing their
question. I will return to this issue in Section 5 of the paper.
Aware that many of my students were not well-prepared for self-directed learning, I needed to
expose them to a structured learning environment. This involved getting students to submit an essay
proposal, so I could check that they were on the right path (appropriate question, understanding of
concepts involved, etc.), but in hindsight this was quite time-consuming and led to an over reliance on
the lecturer. This has the potential to create a lot of administrative work for the academic and in future
it might be preferable to limit the lecturer’s input to validating the question and consider adopting
SWoRD, a web-based peer review system, which randomly assigns students within groups and creates
the correct incentives for serious peer review of essays (Cho et al., 2006; Cho and Schunn, 2007).
Another concern for lecturers who teach large classes is the prospect of marking several hundred
assignments. To reduce the marking burden to manageable levels, lecturers can employ teaching
assistants (tutors) to grade the assignments and/or use student peer grading (Frank, 2006, p. 66). The

1
For further discussion of the debate between structured and unstructured approaches to student learning, see Dynan and
Cate (2008, pp. 64–86).
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W. Geerling / International Review of Economics Education 12 (2013) 48–59 51

latter technique has the advantage of exposing students to a random sample of work done by their
classmates, which will hopefully stimulate greater interest in the subject matter.2

3. Impact on student learning

As highlighted in the previous section, many students struggled at first to formulate an appropriate
question:
Framing a question is a little bit daunting initially. As a student there are very few opportunities
to do this, so I did experience a few nerves when coming up with the questions to write about.
The beauty of this though was that we had another opportunity to learn from what we feared in
the first essay question and build on it in the second essay with a new topic. I did significantly
better on my second essay than I did on my first and I felt that it was through this struggle that I
was able to understand the subject better and the practical application of economic theory to
everyday life (subject evaluation, student 1).3
One of the aims of this writing assignment was to give students more responsibility for framing
questions. The essay proposal helped the weaker students while giving greater confidence to the
stronger students that they were capable of self-directed learning in line with Bloom’s taxonomy of
higher-order learning. Students were also able to draw on their own experience from the subject:
I chose to write up my own essay topic because it wasn’t something you often had a chance to do
at university. At the time, I was using a motorbike as transport and it immediately came to me:
‘Why are motorbikes exempt from fees on toll roads in Victoria?’ I realised I could focus on
something that I enjoyed, the benefits to be had with riding motorbikes and the economic
paradox that existed, waiting to be explained (subject evaluation, student 2).
The most immediate benefit from this writing assignment is getting the students to see the
relevance of studying economics. ‘The essays allowed me to make real-life connections between daily
problems and economics’ (subject evaluation, student 3). Once the learning becomes personal,
students learn instinctively and naturally, which promotes critical thinking skills and deeper learning.
‘The essay contributed to my learning in that I was able to independently research and apply economic
concepts to real world observed situations. This enabled me to use my individual economic thought to
try and decipher human behavior in given circumstances’ (subject evaluation, student 4).
The writing assignment is also a counter to the more prevalent means of assessment, which often
rely on formalism and encourage rote learning of key concepts.

Rarely have I been asked to write an essay in an economics subject. I found essay writing to be a
particularly effective way for me to convey economic concepts. Using mathematics and
formulas is effective to an extent, however, having the opportunity to describe and critically
analyse economic concepts in conjunction with real world scenarios extends the study of
economics to a whole new level (subject evaluation, student 5).
The emphasis is not on teaching students the right way of thinking but to consider various
hypotheses (rather than simple black/white dichotomies) and to apply economic principles in a
consistent, logical and rational manner to arrive at the most plausible answer. The best questions, to
paraphrase the subtitle of Freakonomics, explore the ‘hidden side of everything’ (Dubner and Levitt,
2005), i.e. contain an element of counter-intuition. These essays:
teach the student to develop the mind of an economist and provide meaning to social
phenomena through the primary principles of incentives, rationality, logic and other classical
economic concepts. While, from the outset, a particular social phenomenon may seem an
absurd, irrational proposition, it is only through a clear concise economic method that we see

2
For more on this, see Frank (2006, pp. 66–67).
3
Ethics approval to use student material was granted on the condition that students be anonymised. In this paper, students
are labelled student 1, student 2, student 3, etc.
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52 W. Geerling / International Review of Economics Education 12 (2013) 48–59

results can be deducted in a very logical manner. Thus economic principles become the lens
through which we can view the world and make sense of it (subject evaluation, student 6).

4. Examples from the classroom

In line with the criteria set by Frank, ‘. . .all that matters is that the question posed be interesting
and that the proposed answer to it rest on plausible economic reasoning’ (Frank, 2006, p. 62).
Therefore, the existence of a plausible explanation or intelligent hypothesis is more important than
whether the answer is right or wrong, a belief which is necessary to encourage students to pose and
tackle problems from different perspectives. Remember: these are essays from undergraduate
students, not PhD students. My students came up with a range of fascinating questions and responses.
Here is a sample of the finest. I have summarised their main argument.

4.1. Does McDonald’s three minute drive-thru service lead to better outcomes for society? [Student 1]

One of the most important lessons in economics is that incentives matter. Students soon learn that
incentives sometimes have perverse or unintended consequences.
The premise of the offer is simple: if your order takes longer than 3 min to fulfil, the customer will
receive a free burger on the next visit. This is a fascinating question because it deals with the principal-
agent problem, which arises under conditions of information asymmetry. Management can use the
number of free burgers each employee is giving away (among other metrics) as a screening tool to
better gauge labour productivity, while signalling to the marketplace that McDonald’s cares about its
customers. In theory, these improvements in labour productivity should increase McDonald’s profit.
But will they?
Student 1 reasoned that the success of this policy ultimately depends on the behavior of the
employees and customers. An employee has an incentive to deliver an order on time, even if it is not
ready. By using a marginal cost-benefit analysis, the employee will determine if it is worth the risk of
being caught undercooking a customer’s meal or leaving items out just to meet the 3 min deadline.
This is an illustration of perverse incentives: a policy designed to improve customer service and
satisfaction may end up having the opposite effect. This could be compounded by the behavior of
customers who deliberately try to rort the system by driving slowly, fiddling with money, or making
confusing/complex orders to try to secure a free burger.
The actual effectiveness of this policy really depends on where customers and employees draw the
line in terms of how much utility a free burger brings them. If consumption and supply habits do not
change, the policy’s only effect should be positive: an increase in sales volume.

4.2. The market is amoral: should you buy the last can of coca cola on the shelf? [Student 2]

This is one of my favourite questions: on the surface, it represents a simple dilemma which can be
answered by any audience: act according to altruism or through self-interest? Self interest is, of
course, one of the central aspects of Adam Smith’s ‘Invisible Hand’, which lies at the heart of our
understanding of how free markets function. This question can be used to teach students the water/
diamond paradox and answer the question of ‘who feeds Paris?’ (how markets actually work in a
decentralised economy) (Wheelan, 2002, ch. 1).
The question of who actually takes the last can of coca cola in a free market is determined by the
marginal willingness to pay of the two parties. Student 2 then throws up an interesting hypothetical.
Assume that both parties vying for the can of coca cola decide to act altruistically, i.e. sacrifice their
own want, making it available to the other. Would this lead to an efficient outcome? If both consumers
signal their willingness to pay, then the issue is resolved: the party with the highest willingness to pay
gets the can. But if, for whatever reason, this information is not received (misinterpreted or poorly
sent), we have what is known as a ‘separating equilibrium’. A negative externality is imposed on the
seller (the can remains unsold) and all parties lose, including the two customers, who have incurred an
opportunity cost (alternative use of time forgone). The two customers are like fielders in a game of
cricket or baseball who run to take a catch, stop, look at each other, then leave the ball for the other.
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W. Geerling / International Review of Economics Education 12 (2013) 48–59 53

Nobody takes the catch. If you extrapolate this result across the economy, the results are dire: market
failure.
This is a very simplistic example of how an altruistic market would operate but the lesson is clear:
the issue of information asymmetry must be resolved to ensure markets operate efficiently and
clearly. So the next time you are at the shop and staring at the last can of coca cola on the shelf, just buy
it. Unless, of course, you derive more benefit from allowing a nice young lady, or large under-
caffeinated fridge with a head, to purchase it.

4.3. Why are designer denim shorts so expensive? [Student 3]

Student 3 performs the role of an ‘Undercover Economist’ (Harford, 2006) to ascertain the reasons
why denim shorts are expensive via-a-vis denim jeans. A pair of denim shorts in Australia retails for
$150–250, which is actually more expensive than a standard pair of jeans. The student begins with the
obvious answers: (i) prestige and exclusivity; (ii) better fit; (iii) quality of the materials; (iv)
innovation and designing process. But this is incomplete.
Market structure is an important piece of this puzzle. The designer firms seek to maximise profits
by charging consumers the highest price they are willing to pay. And if consumers are willing to pay
more for a pair of shorts than a pair of jeans, the issue (at least in part) relates to what utility
consumers derive from designer shorts. Why is their marginal willingness to pay so high?
Three main factors are presented, each of which is persuasive:

1. Appearance and being fashionable: one might argue that wearing more expensive, designer
clothing improves a man’s appearance and therefore signals a higher ‘value’. I am wealthy and
fashionable. Women generally regard men with higher incomes and social status as more desirable
marriage partners (Frank, 2007). As a result, men’s marginal willingness to pay for designer shorts
rises.
2. The pursuit of happiness: being rich does not necessarily make one happier in life as our
expectations and aspirations adjust over time (Frank, 1999). Nevertheless, having certain positional
goods does give many consumers a general sense of self-value and contentment. Relative position is
often more important to consumers than absolute position but this is a zero sum game: one can only
win when somebody else falls behind. And one must remain on this hedonic treadmill to stay ahead.
3. Perception of scarcity: designer companies try to create an image of scarcity in the minds of
consumers by differentiating themselves through price, design, image and the quality of their
products. These markets are not perfectly competitive: firms can only set and keep prices above
marginal cost and derive above normal economic profits by creating the ideal of a heterogeneous
product in the minds of consumers, creating an artificial barrier to entry. If consumers believed all
denim shorts were essentially the same, a bidding war would drive the price down to where price
equals marginal cost, i.e. there would be no economic profits in the long run.

Ultimately, it is the branding which creates the perception of premium in the mind of the
consumer: ‘Brand X is worth much more than the next best alternative’. Demand for the designer
products becomes inelastic for consumers, allowing designer companies to capitalise on this by
reaping above normal economic profits.

4.4. How has the contraceptive pill contributed to the split in the relationship market in Western societies?
[Student 4]

A variance on the theme of markets is the informal market for personal relationships, a topic which,
on the surface, appears to have little in common with economics, but this essay on the contraceptive
pill proves otherwise.
When the contraceptive pill was first made available in the 1960s, it signalled the liberation of
women, allowing frequent sexual experiences without the unintended (often negative) externality of
becoming pregnant. This lowered the cost of premarital sex substantially. Over time, this has
contributed to a split in the unitary relationship market into: a sexual market and a relationship
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54 W. Geerling / International Review of Economics Education 12 (2013) 48–59

market, a consequence probably unforeseen at the time of its introduction. Student 4 argues that this
is due to different levels of scarcity, bargaining power and preferences for either sex across the two
markets.
To simplify things, Student 4 assumed that the actors in each market were heterosexual. Furthermore,
the relationship market is defined as a place of courtship, for people looking to find the right person and
settle down. This does not exclude sexual activity, of course, but the emphasis is on establishing a deeper
connection and a possible long-term future. The pill has redefined the boundaries of this market by
allowing greater sexual activity without ‘strings’ of any type (one night stands, several sexual partners).
This split has put strain on the aforementioned relationship market, as there are now more options for
both men and women in either market. Student 4 assumed that men tend to be the dominant (majority)
consumer in the sex market (usually a safe assumption); therefore, the relative scarcity of women in this
market gives them higher bargaining power. Men engage in a costly arms race (among themselves)
competing for the ultimate product: sex. Conversely, there is a relative scarcity of men in the relationship
market, as men filter themselves out of this market in the short-run. As a result, the cost to a woman of
finding a good man in the relationship market must rise (at least in the short run).
As the contraceptive pill lowers the cost of sexual activity (pregnancy, at least), it increases the
supply of participants willing to enter this market. The relative scarcity of women in this market (see
assumption about preferences above) gives them some market power, allowing women to create
barriers to entry based on personal preferences, e.g. height, personality and wealth. The absence of
(female) competition keeps the price at which a female is willing to enter this market relatively high.
Greater female competition and/or a reduction in a man’s marginal willingness to pay will change the
dynamics of supply, demand, price and equilibrium.
The relative scarcity of men in the relationship market means that women may have to
compromise and accept an inferior good (an undesirable man) if they are faced with a situation where
other female competitors are vying for the same good (man).
The contraceptive pill has liberated women but in the short run, at least, contributed to a split in the
relationship market. That’s a classic trade-off.

4.5. Why are mobile phone calls more expensive than landline calls? [Student 5]

Some essays had implications for public policy and could be used to teach principles of
Microeconomics: regulation versus competition, natural monopolies, barriers to entry, etc.
This is a pertinent question in an era where mobiles phones threaten to erode the century-old
domination of landline phones. Consumers often complain about being ripped off, yet fail to
understand the range of complex factors which explain the pricing structure.
Some of the reasons put forward by Student 5 are intuitive:

1. High fixed costs of infrastructure are passed onto consumers.

2. Limited wireless spectrum makes mobile phone call time a scarce resource that needs to be priced
accordingly.
3. Concentration of market power in the three main mobile phone providers (Telstra, Optus,
Vodafone/3) allows price gouging.
4. Inelastic demand for mobile phone services: increased integration of these devices into our
everyday lives raises people’s willingness to pay and increases exit costs.
5. There are substantial barriers of entry to new mobile phone providers: small population, start up
costs and limited wireless spectrum.

An attractive component of many mobile phone contracts is the provision of a ‘free’ (or heavily
discounted) handset, which acts as a lure to entice consumers. Many consumers fail to understand a
basic maxim of economics: there is no such thing as a free lunch. The provider recovers the cost of
subsidising the handset through higher call rates while tying the consumer to a 12–24-month
contract.
There is also a problem of information asymmetry. A standard local SMS message sent over the
three largest mobile phone networks in Australia costs a consumer 25 cents. The consumer has no way
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W. Geerling / International Review of Economics Education 12 (2013) 48–59 55

of knowing whether this reflects the true cost of service provision. Given the market power
highlighted above, the producer is certainly extracting consumer surplus from an uninformed
consumer.
An economic analysis of the pricing structure in the mobile phone industry reveals both
conventional and hidden costs. The government can help alleviate the former by encouraging greater
competition and the provision of increased network capacity. Ultimately though, price gouging will
always exist unless consumers become better informed.

4.6. Why does a 600 ml bottle of coke cost so much more per litre than a 2 l bottle? [Student 6]

The final essay was an unconventional, seemingly paradoxical topic.

On face value, this appears to be counter-intuitive: the principle of economies of scale holds that
increasing production should lead to a decrease in average costs.
In Australian supermarkets, the prices of goods are displayed in the relevant metric, in this case $
per litre. A 2 l bottle of coke costs $3.64 ($1.82 per litre) whereas a 600 ml bottle retails for $3.25 ($5.42
per litre).4 Why would any rational consumer purchase a 600 ml bottle when it’s 3 times more
expensive in relative terms?
The 600 ml bottles are purchased from a fridge by the checkout register whereas the 2 l bottle is
located on the shelf (at room temperature). Some consumers are willing to pay a premium for a cold
bottle of coke but this factor alone would not explain a three-fold increase in price.
Supply side factors can explain some of this premium:

1. Increased overheads: keeping the 600 ml bottle chilled in a fridge by the cashier obviously costs
more than holding a 2 l bottle on the shelf (electricity versus shelf space).
2. Volume: the 2 l bottle is one of the most popular varieties. Although it holds more volume and in
theory should cost more to produce, its production exhibits economies of scale due to the large
quantity sold. The 600 ml bottle may exhibit the opposite: diseconomies of scale because sales are
much lower.

Demand side factors complete the story:

1. Location economies: some consumers are willing to pay a premium for convenience. As there is
limited competition for products at the register, this is reflected in a higher price.
2. A consumer’s marginal willingness to pay and elasticity of demand are not constant while
shopping: in fact, the former may rise the closer one gets to the cashier, especially if there is a long
queue, making the customer less responsive to price. The opportunity cost of leaving a line rises and
consumers may be willing to pay a premium to avoid the hassle of leaving the queue, finding a
substitute product and lining up again. Supermarkets understand this, which is one of the reasons
why high value-added products are located close to the checkout.
3. Trade-offs: purchasing a 600 ml bottle of coke gives a consumer the benefit of immediate
consumption (temperature and size) but incurs a greater monetary cost. A consumer thinking at the
margin will buy the 600 ml bottle over the 2 l variety when the marginal benefits exceed the
marginal cost.

This question is a great illustration of how a seemingly paradoxical, irrational decision can have
surprisingly rational origins.

5. Results and reflections

Seventy-three students took ‘Economics of Everyday Life’, providing me with a source of 140 essays
over the semester. For each essay, students were given the option of framing their own question in line
with Frank’s ‘Economic Naturalist’ (Frank) or using a question from an interactive website (Assigned).

4
Prices obtained at Coles supermarket in October 2010.
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56 W. Geerling / International Review of Economics Education 12 (2013) 48–59

Table 1
Gender.

First essay Second essay

Frank Assigned Frank Assigned

Male 29/44 (65.91%) 15/44 (34.09%) 33/41 (80.49%) 8/41 (19.51%)

Female 19/28 (67.86%) 9/28 (32.14%) 20/27 (74.07%) 7/27 (25.93%)
Z value (p-value) 0.1717 (0.865) 0.624 (0.535)

Note: There were 45 males and 28 females in the class. One male did not submit a first essay; four males and one female did not
submit a second essay. Neither Z value is significant at 10%. The Z score is obtained using the test for equality of proportions.

Table 2
Residency.

First essay Second essay

Frank Assigned Frank Assigned

Domestic 33/40 (82.50%) 7/40 (17.50%) 32/37(86.49%) 5/37 (13.51%)

International 15/32 (46.88%) 17/32 (53.13%) 21/31(67.74%) 10/31 (32.26%)
Z value (p-value) 3.19** (0.0007) 1.857* (0.0314)

Note: There were 41 domestic students and 32 international students in the class. One domestic student did not submit a first
essay; four domestic students and one international student did not submit a second essay.
*
Significance at 10%.
**
Significance at 5%.

The four tables in this section provide basic statistical data on: gender, residency, degree type and
mean of the essay result (Tables 1–4).
From the table above, it is clear that the impact of gender in choosing between alternative essay
types is neutral. A higher percentage of both males and females chose a Frank-style option for their
second essay.
It is clear from the data that domestic students felt safer framing their own question. There is prima
facie evidence to suggest that international students were reluctant at first, perhaps owing to concerns
about language or a preference for more structured forms of writing. In an encouraging sign,
international students were more willing (at the 5% level) to participate in self-directed learning on
the second essay (Z value is 1.673; p-value is 0.0475).

Table 3
Degree type.

Degree (number in total) First essay Second essay

Frank Assigned Frank Assigned

Single
Bachelor of Accounting (5) 2 3 4 –
Bachelor of Arts (1) – – 1 –
Bachelor of Business (17) 12 5 13 4
Bachelor of Economics (10) 6 4 5 4
Bachelor of Finance (3) 2 1 2 1
Bachelor of International Business (12) 4 8 7 4
Double
Bachelor of Accounting/Economics (9) 8 1 6 1
Bachelor of Accounting/Finance (1) 1 – 1 –
Bachelor of Arts/Commerce (1) 1 – 1 –
Bachelor of Arts/Economics (5) 5 – 5 –
Bachelor of Law/Business (1) 1 – 1 –
Exchange Program (8) 6 2 7 1
48 24 53 15

Note: International students on an exchange program were allowed to take any electives from within the Faculty of Law of
Management. The author has no data on which courses they were studying in their home institution, but it is safe to assume
they would have been Business-related.
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W. Geerling / International Review of Economics Education 12 (2013) 48–59 57

Table 4
Difference in mean between writing types.

Mean (Frank) Mean (Assigned) Difference in Mean T Stat (p-value)

First essay 65.42 57.83 7.59 2.343** (0.0113)

Second essay 66.36 58.27 8.09 2.659*** (0.0053)

Note: 67 students submitted 2 essays. These are mean values for essays marked/100.
**
Significance at 5%.
***
Significance at 1%.
The Z score is obtained using the test for equality of means.

‘Economics of Everyday Life’ is a 2nd year elective, which is not part of any designated major in
economics. As such, the student body is heterogeneous. Only one-third of the students were doing
economics as a single/double degree; the rest, as a standalone elective. Two things stand out in the
table above: (i) students undertaking double degrees almost exclusively chose to frame their own
question, which is not surprising given that they have a higher enter score5 (usually in the mid to high
80s versus low 70s for a single degree), and are generally more capable of self-directed learning; (ii)
students undertaking the Bachelor of International Business were more comfortable initially using an
assigned question. This degree has an enter score of 70, is nearly exclusively comprised of
international students, and is one of the business degrees furthest removed from economics. In a
positive sign, the number who framed their own question for the second essay nearly doubled.
There is evidence for both essays that students scored higher on the Frank-style essay: at a 5% level
of significance for the first essay and a 1% level of significance for the second essay. To a certain extent,
this group was self-selecting: the confident and better students felt more comfortable directing their
own learning. While the better students seized their opportunity first, the number of students—both
in total number and international—willing to frame their own essay increased during the semester,
which is a sign that more students were prepared to direct their own learning. Even with a 40%
increase in the number of international students writing a Frank-style piece for their second essay, the
mean went up (albeit slightly).
From this exploration of Frank’s writing assignment, I have learned the following: first, in future,
students need to be encouraged to come up with their own questions. Using existing questions stifles
creativity and encourages many students to re-hash the synopsis provided or write something
descriptive rather than interesting and innovative. Second, the lecturer needs to provide a structured
learning environment, either through the submission of an essay proposal, greater use of peer review,
or both, to identify problems early and remedy them. Third, international students from a non-English
speaking background need additional support in framing a suitable question. The transition from
directed to self-directed learning is very difficult for students with little experience in economics and/
or language barriers and a structured environment is needed (at least in the short term) to provide
direction, guidance and develop confidence.

6. Final remarks

This paper has explored a specific application of Frank’s proposition: that illustrating and applying
principles in the context of simple examples drawn from familiar settings leads to more effective
learning. The findings of this paper suggest that the economic naturalist writing assignment is an
effective device for promoting greater student engagement and comprehension of material at an
undergraduate level and can increase a student’s ability to engage in self-directed learning within an
appropriately structured learning environment. Furthermore, exposure to regular, structured writing
assignments is an important means to develop a student’s economic literacy. As students progress
from lower order learning to higher order learning, the degree of structure can be reduced to
accommodate a greater capacity for self-directed learning.

5
In 2010, most university admissions were based on an ENTER score a student received when completing his/her secondary
school education. The highest possible score was 100.
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58 W. Geerling / International Review of Economics Education 12 (2013) 48–59

On a more general level, encouraging students to apply economics in an unconventional setting

should be taught across the undergraduate level, indeed, even expanded into postgraduate studies to
give the graduates of tomorrow an intuitive understanding of economics one cannot find in the more
abstract forms of teaching.

Acknowledgements

This paper arose from a case study developed during a period of stay at the Economics Network
from April–June 2011. Special thanks to Inna Pomorina, John Sloman, Martin Poulter, Miriam Best, Ros
O’Leary and Wyn Morgan for making me feel welcome and providing constructive feedback on earlier
drafts.
The author would also like to thank the following for comments and feedback: David Addison, Gary
Magee, Dirk Mateer and Michael Smiddy. Thanks also to Laura Moate for her excellent proofreading
skills. I’m greatly indebted to Liam Lenten, John Shannon and Suzanne Sommer for their help with the
quantitative material.
Finally, a big thank you to the following people whose creativity, hard work and talent deserve to be
acknowledged: Amy Young, Anthony Bertuzzi, Brenton Norman, Cameron Thomas, Chris Gerendasi,
Hans Christian Pedersen, Heath Webb, Helena Knapik, Laura Bulluss, Martin Przybyszewski, Naushad
Ilahee, Sebastian Poulsen, Trevor Wright.

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Web resources

Ghent, L., Mateer, D.G., Stone, M. ‘TV for economics’ URL: http://tvforecon.blogspot.com/
[last accessed 15 April 2011]. This website has a list of clips from TV shows that can be used to
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W. Geerling / International Review of Economics Education 12 (2013) 48–59 59

emphasise applications of economic concepts. Hall, J.C., Lawson, R.A., Mateer, D.G. ‘From
Abba to Zeppelin, Led’ URL: http://www.divisionoflabour.com/music/author_archives/dirk_
mateer/ [last accessed 18 April 2011]. This weblog provides lyrics and follow-up questions
that can be used to learn economics. Mateer, D.G. ‘Economics in the movies’ URL: http://
economicsinthemovies.swlearning.com/ [last accessed 17 April 2011]. This website contains a
database of film scenes that can be used to illustrate economic concepts.