SIMULACIJE U REFORMI NASTAVE EKONOMSKIH FAKULTETA I POVEZIVANJU EKONOMSKE TEORIJE S EKOLOŠKIM I SOCIJALNIM IZAZOVIMA
SIMULATIONS IN THE REFORM OF ECONOMICS EDUCATION AND THE INTEGRATION OF ECONOMIC THEORY WITH ECOLOGICAL AND SOCIAL CHALLENGES

Author(s): Brano Markić, Marko Markić
Subject(s): Higher Education , Political Ecology, Environmental interactions, Green Transformation
Published by: Finrar d.o.o Banja Luka
Keywords: simulation; green economy; Monte Carlo simulation; R language;
Summary/Abstract: Simulations of economic theories in university-level economics education represent an effective tool for better understanding abstract economic concepts and principles. Simulation is an interactive method that enables students to apply theories in controlled environments. It fosters deeper learning and critical thinking. In economics education, simulation offers several advantages over traditional learning methods. First, it allows students to grasp how economic theories actually function by presenting various scenarios and alternatives. Second, students can choose among different options—three, four, or more—and observe the outcomes of their decisions in virtual environments that replicate real economic conditions. Third, learning through simulation becomes engaging and entertaining, making knowledge more accessible and less abstract. Fourth, simulation facilitates the understanding of complex economic systems, as it involves numerous interacting variables that operate simultaneously and jointly. This enables the development of simulations of markets, international trade, business operations, and economic policy instruments and measures. The use of simulations in economics education requires specialized software solutions such as Simul8, Vensim, EcoSim, or the development of custom simulation programs for specific economic theories. Implementing simulation software provides benefits for both professors and students. Professors can more effectively transfer theoretical knowledge, monitor the outcomes of students’ decisions, and analyze them. In addition to theoretical knowledge, students also develop and adopt practical implementation experience, gaining insight into the power of economic theory. This paper explores the possibility of implementing Monte Carlo simulation for assessing the profitability of investment projects using the R programming language. Students are provided with a high level of interactivity and the ability to simulate reality based on the selected variable values within the Monte Carlo simulation, allowing for the analysis of various scenarios and alternatives in economic reality.

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