In an economics exam, how can applying economic theory to real-world scenarios enhance critical thinking skills?

Applying economic theory to real-world scenarios helps students see how concepts work in everyday life, which makes learning more meaningful. For example, if a student studies supply and demand, they can analyze how a change in price affects the availability of a product, like coffee. This connection between theory and reality encourages students to think critically about why things happen in the economy and how different factors interact. By examining real-world examples, students can develop better problem-solving skills as they learn to apply abstract concepts to practical situations. Overall, this approach not only deepens their understanding of economics but also strengthens their ability to think critically about various issues.