2018/01/31: Educational psychologists have discovered that much of our knowledge is “inert.” Students who excel on exams frequently fail to apply their knowledge to the real world. The same goes for students of biology, mathematics, statistics, and, I’m embarrassed to say, economics. I try to teach my students to connect lectures to the real world and daily life. My exams are designed to measure comprehension, not memorization. Yet in a good class, four test-takers out of 40 demonstrate true economic understanding.