The use of theory of variation to improve the teaching and learning of'full cost'

Abstract

Opportunity cost is not only the first threshold Economics concept learnt by students, but also a common concept applied in decision making such as cost-benefit analysis. Most decision makings made by government or private firms involved in-depth cost-benefit analysis. However, researches in economic education revealed that the teaching and learning of opportunity cost might not be effective so that students, or even adults apply this concept wrongly in decision making.

The objectives of this study are to investigate the effectiveness of the theory of variation when it is adopted in the teaching of the concept of opportunity cost and to evaluate the learning outcomes of students by investigating the change of the qualitatively different ways of seeing or experiencing the concept of opportunity cost. The object of learning was the capability of understanding the concept of opportunity cost. Critical aspects of the object of learning were identified from the pre-test and two patterns of variation were designed respectively in two different groups of secondary four students. The results of this study showed that the learning outcomes of both groups were improved by the rise in the levels of the conceptions on opportunity cost and full cost, and it was even more powerful in group 2. It concluded that appropriate pattern of variation could raise the effectiveness of learning.