Solving Problems is as Easy as ABCD

The purpose of the ABCD approach is three-fold: 1) breaking down complex problems into reasonable steps means you are less likely to get stuck, 2) requiring you to be clear about your chain of reasoning means you are more likely end up with a correct or reasonable answer, and 3) requiring you to show/explain in writing your reasoning means I can clearly see where misunderstandings are occurring. You will need to use these steps to solve problems whenever they are preceded by “ABCD:” in class activities and exams. Analyze the problem (2 points) 1.BOX what best summarizes the question: “list”, “what will you do”, “explain …”, “why”, “which one” etc. The number of box will indicate the number of answers you need to provide before you are done in part C. 2.UNDERLINE anything that needs a definition or equation. Optional: Squiggle underline anything you want to remind yourself of when you double-check in Step D, but that doesn’t need clarification in Step B. Background information (4-6 points) 1.Define and/or write the formula for any terms underlined in step A. 2.Identify any assumptions, models, and/or ideas relevant to the question. Optional: If it will help you solve the problem or explain your answer, draw a graph to illustrate the situation. Especially with the supply & demand model and the aggregate supply/aggregate demand model, drawing a picture can save you a lot of written explanation. Combine to solve (4-6 points) 1.Clearly answer the question or questions which you boxed in Step A based on the background information you provided in Step B. 2.Provide your reasoning! ANYONE with intro to microeconomics should be able to read your answer and understand how you arrived at the answer you are gave. Optional: If you’re stuck, return to step B to see if you can elaborate on your definitions or provide definitions and/or equations for terms you used in step B