TEACHING ECONOMIC SCARCITY, CHOICE, OPPORTUNITY COST AND RATIONALITY, USING PRESIDENT ROBERT MUGABE’S 1997 DECISION TO PAY WAR VETERANS $50 000
TEACHING ECONOMIC SCARCITY, CHOICE, OPPORTUNITY COST AND RATIONALITY, USING PRESIDENT ROBERT MUGABE’S 1997 DECISION TO PAY WAR VETERANS $50 000

Summary/Abstract: Economic history is an important branch of economics, that can provide significant insights into historical economic phenomena. In this paper, I propose the 1997 compensation of war veterans by the Zimbabwean government (under President Robert Mugabe), as an example that can be used to teach economics concepts to undergraduate economics students. As the war veterans had threatened to remove the President from his office through violence, I show the trade-offs that Mugabe had to make, and the constraints he faced when agreeing to pay the funds to the veterans. I present a lesson plan that economics facilitators and lecturers can use with their learners. My example is unique in that it teaches students about making choices under compulsion, while most economics textbooks use examples that show voluntary choices.

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