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A Non-Graphical Approach to Teaching Utility/Choice Theory in Undergraduate Economics Courses

The traditional approach to teaching choice theory to undergraduate students uses indifference curve/budget constraint graphs. Unfortunately, this technique does not closely resemble the decision-making process and consequently, is being de-emphasized in many Principles of Microeconomics texts. This paper presents an alternative approach, used by the author, which is relatively simple to use and understand. This technique is then applied to analyze the decision to purchase a good, various labor market decisions, and a variety of other decisions. Because this framework provides a simple approach to understanding choice theory, instructors in many different economics courses can use it. Some of these courses include microeconomics principles, labor economics, public choice, the economics of the family, and the economics of crime.