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8424473

R y ck m an , A n n e tte J a n e

AN ASSESSMENT OF THE ECONOMIC KNOWLEDGE OF SELECTED
MICHIGAN BUSINESS EDUCATION STUDENTS

M ichigan S tate University

University
Microfilms
International

300 N. Zeeb Road, Ann Arbor, Ml 48106

PH.D.

1984

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y /'

University
Microfilms
International

AN ASSESSMENT OF THE ECONOMIC KNOWLEDGE OF
SELECTED MICHIGAN BUSINESS EDUCATION STUDENTS
By
A n n e t t e J a n e Ryckman

A DISSERTATION

Submitted to
Michigan S t a t e U n i v e r s i t y
in p a r t i a l f u l f i l l m e n t o f t h e r e q u i r e m e n t s
for the degree of

DOCTOR OF PHILOSOPHY

Department o f Teacher Education
1984

ABSTRACT
AN ASSESSMENT OF THE ECONOMIC KNOWLEDGE OF
SELECTED MICHIGAN BUSINESS EDUCATION STUDENTS
By
A n n e t t e J a n e Ryckman
The p r o b l e m wa s t o a s s e s s t h e e c o n o m i c k n o w l e d g e o f
selected

Michigan b u s i n e s s e d u c a t i o n s t u d e n t s a t th e s e c ­

ondary l e v e l .

The e c o n o m i c l i t e r a c y

s t a t u s of the students*

k n o w l e d g e w a s m e a s u r e d by u s i n g t h e T e s t o f E c o n o mi c
L i t e r a c y (TEL).
tive

E a c h t e s t i t e m wa s c a t e g o r i z e d

l e v e l and a c o n t e n t c a t e g o r y .

o f 1,506 s t u d e n t s e n r o l l e d

by a c o g n i ­

The p o p u l a t i o n c o n s i s t e d

i n c l a s s e s t a u g h t by V o c a t i o n a l

O ffic e Block p r o j e c t t e a c h e r s .

Demographic and r e l a t e d

data

were a l s o c o l l e c t e d .
A l e t t e r a n d r e s p o n s e c a r d w e r e m a i l e d o n A p r i l 1 2,
1981, r e q u e s t i n g
TEL.

the te a c h e rs to ad m in ister

A s e c o n d l e t t e r a n d c a r d w e r e m a i l e d o n A p r i l 20

t o t h o s e who d i d n o t r e s p o n d .
A p r i l 28.

SPSS.

P a c k e t s w e r e m a i l e d on

Data from t h e t e s t s and q u e s t i o n n a i r e s c o m p l e t e d

b e t w e e n May 7 a n d J u n e
Cy b e r

the 40-minute

10, 1 9 8 1 , w e r e e n t e r e d on t h e MSU

10 c o m p u t i n g s y s t e m a n d a n a l y z e d by s u b r o u t i n e s o f t h e
Frequency d i s t r i b u t i o n s were used to

resp o n ses to a l l

items.

summarize t h e

ANOVAs a n d t h e S c h e f f e * s p o s t hoc

A n n e t t e J a n e Ryckman
m u l t i p l e c o m p a r i s o n wer e u s ed t o t e s t h y p o t h e s e s where
applicable.
Of t h e s e v e n e c o n o m i c c o n t e n t c a t e g o r i e s ,

students

c o r r e c t l y answered th e h i g h e s t p e r c e n t a g e o f q u e s t i o n s in
t h e a r e a s o f "The B a s i c

E c o n o mi c P r o b l e m , " " E c o n o m i c S y s ­

t e m s , " a nd " M i c r o e c o n o m i c s . "
"Concepts fo r
the f i r s t

The l o w e s t a c h i e v e m e n t wa s i n

E v a l u a t i n g E c o n o mi c A c t i o n s a n d P o l i c i e s . "

four c a te g o r ie s ,

s t u d e n t s had t h e

lowest percent­

age o f c o r r e c t r e s p o n s e s in "Macroeconomics."
items,

Of a l l

the four

s t u d e n t s r a n g e d fro m 58.0 t o 77.6 p e r c e n t ;

l o w e s t r a n g e d f r o m 2. 7 t o

fiv e cognitive

levels,

15. 0 p e r c e n t .

Of t h e

t h e h i g h e s t p e r c e n t a g e (42.7 p e r c e n t )

o f c o r r e c t r e s p o n s e s was a t t h e " A p p l i c a t i o n "

level,

l o w e s t (26.0 p e r c e n t ) a t t h e " E v a l u a t i o n " l e v e l .

either

test

the four with the h ig h e s t percentage o f c o r re c t

r e s p o n s e s by t h e

tically

Of

s ig n if ic a n t d iffe re n c e s (alpha
in th e c o n t e n t c a t e g o r i e s or

the

No s t a t i s ­

= 0.05) were found

in four o f the c o g n itiv e

l e v e l s f o r s t u d e n t s f r o m C l a s s A, B, C, o r s e c o n d a r y a r e a
vocational education center

schools.

C lass C students

scored higher a t the "E v alu atio n " l e v e l
s t u d e n t s (p. < 0 .0 1 7 6 ).

than did the cen ter

ACKNOWLEDGMENTS
T h e r e a r e many s p e c i a l p e o p l e a n d r o l e m o d e l s t o
whom t h i s w r i t e r

e x t e n d s g r a t e f u l ack now le dg m en t and t h a n k s .

S p e c i a l i n d e b t e d n e s s and a p p r e c i a t i o n

are directed

to the follow ing.
Dr. R o b e r t P. P o l a n d
tional

leader,

research

confidant,

and a l s o c h a i r p e r s o n

Dr . E l l i s

of th is research study,

R. Thomas was f i r s t

this w riter's

doctoral

Dr .

guidance,

assistance,

studies

ad­

M a r i a n C. S h a f f e r

and f r i e n d s h i p .

Zimmermann i s a r e a l i s t who

h a s a l w a y s b e e n a c o n c e r n e d a nd h e l p f u l
research

c o m m i t t e e member o f

study.

Dr. P a u l

S l o c u m and Dr . C h a r l e s A. Bl a c k m a n

member s o f t h e d i s s e r t a t i o n

Dr. B i l l i e

phases.

T. R a d e r i s a s t a t i s t i c i a n

to th i s w r i te r 's

are

c o m m i t t e e who g a v e e x c e l l e n t

g u i d a n c e and s u g g e s t i o n s d u r i n g t h e l a t e r

cial

chairperson

a nd t h e p e r s o n who c o n s i s t e n t l y p r o v i d e d i n v a l u a b l e

encouragement,

this

of th is

study.
The l a t e

visor,

is a p o s it i v e - t h i n k i n g educa­

success,

a n d Dr .

J o h n P.

who was c r u ­
Ma n z e r

p r o v i d e d i n v a l u a b l e a d v i c e a s an e c o n o m i c e d u c a t i o n
con s u l t a n t .
This w r i te r

is g ra te fu l

of a f e l lo w s h i p under

t o h a v e been t h e r e c i p i e n t

M ichigan's Education
ii

Professions

D e v e l o p m e n t A c t (EPDA) a n d t o h a v e b e e n a g r a d u a t e a s s i s t a n t
f o r Dr . E l l i s
tion

R. Thomas , f o r m e r E x e c u t i v e D i r e c t o r ,

o f Michigan

Ec o n o mi c E d u c a t i o n

Centers.

Associa­

The A s s o c i a ­

t i o n was p a r t i a l l y f u n d e d by t h e C o l l e g e o f B u s i n e s s , M i c h i ­
gan S t a t e U n i v e r s i t y ,

under

the d ir e c tio n

o f Dean R i c h a r d J .

Lewis.
A c k n o w l e d g m e n t i s a l s o g i v e n A r t h u r S. T a b a c h n e c k
f o r h i s e x c e l l e n t co m put er and s t a t i s t i c a l
J a n e t R.

J a me s f o r

her

critique.

Thanks a r e a l s o
and c h i l d r e n ,

extended

Dr. Lynn A. Ryckman,

R o g e r R. Ryckman, f o r

a s s i s t a n c e and to

their

t o t h i s w r i t e r ’s s p o u s e
S u s a n A. Ryckman,

and

l o v e and u n d e r s t a n d i n g .

T h r e e p e o p l e who w e r e a l w a y s s o u r c e s o f i n s p i r a t i o n
were t h i s

w r i t e r ’s p a r e n t s ,

and m o t h e r - i n - l a w ,
whom d i e d d u r i n g

Peter

E.

and

M a r g a r e t (Mrs.

C.

Roy) Ryckman, a l l

the w ritin g of th is

I n d iv id u a ls within

J a n e C. W a l l r a t h ,
of

study.

th e ho n o rary s o c i e t y D e l t a Pi

E p s i l o n h a v e a lw a y s s e t t h e example o f l e a d e r s h i p and a
"goal for

excellence."

Many t h a n k s a r e d u e t o o f f i c e e d u c a t i o n
who i n

this w riter's

opinion

o p e r a t i v e and h e l p f u l

teachers,

a r e and h a v e a l w a y s been c o ­

in r e s e a r c h e f f o r t s .

P e r h a p s t h e r e w i l l b e a t i m e when t h i s w r i t e r c a n d o
mo r e t h a n e x p r e s s g r a t i t u d e by g i v i n g m o r e t h a n r e c e i v i n g .

iii

TABLE OF CONTENTS
Page
LIST OF TABLES .

.

.......................................................................................

vi

CHAPTER
1.

INTRODUCTION ........................................................................
S t a t e m e n t o f t h e Problem

...............................

3

P u r p o s e o f t h e S t u d y .........................................

5

B a c k g r o u n d o f t h e S t u d y ....................................

6

t h e S t u d y ..............................................

9

A s s u m p t i o n s ...................................................................

12

Delim itations

..............................................................

13

L i m i t a t i o n s ...................................................................

14

D e f i n i t i o n o f T e r m s ..............................................

15

O r g a n i z a t i o n o f t h e S t u d y ...............................

17

REVIEW OF THE LI TERATURE.........................................

18

Need f o r

2.

1

B r o a d e n in g t h e Scope o f B u s i n e s s
Education:
S e le c te d Readings

. . .

19

The Need f o r E c o n o mi c E d u c a t i o n :
S e le c te d Readings
.........................................

26

E m p i r i c a l R e s e a r c h About S t u d e n t s
a n d T e a c h e r s .........................................................

34

A p p l y i n g E c o n o mi c U n d e r s t a n d i n g i n
t h e W o r k p l a c e ....................................................

37

The P o l i c y F r a m e w o r k :
The JCEE,
PCBEE, a n d t h e S t a t e o f M i c h i g a n

.

44

The T e s t o f E c o n o mi c L i t e r a c y .....................

50

iv

.

CHAPTER

Page
3.

DESIGN OF THE RESEARCH AND PROCEDURES USED
P o p u l a t i o n ..............................

57

Population S election

.........................................

58

G a t h e r i n g t h e D a t a ..............................................

59

The D a t a G a t h e r i n g I n s t r u m e n t s

60

. . . .

A n a l y s i s o f t h e D a t a .........................................
4.

PRESENTATION OF RESEARCH FINDINGS

. . . .

74

Research Q u e s tio n s Five through Seven:
.............................
D escriptiveInformation
SUMMARY CONCLUSIONS, AND RECOMMENDATIONS .
Summary o f P r o b l e m a n d P r o c e d u r e s .

86
126

.

126

F i n d i n g s ........................................................................

129

C o n c l u s i o n s ...................................................................

138

R e c o m m e n d a t i o n s .........................................................

140

Recommendations f o r F u r t h e r

143

Im plications

Study

.

73
74

R e s e a r c h Q u e s t i o n s One t h r o u g h F o u r :
Demographic andR e l a t e d I n f o r m a t i o n .

5.

57

. . .

..............................................................

R e f l e c t i o n s ..................................................

145
147

APPENDICES
Appendix

A ......................................................................................

150

Appendix

B ................................................................

154

Appendix

C ......................................................................................

167

Appendix

D ......................................................................................

168

Appendix

E ......................................................................................

169

BIBLIOGRAPHY ......................................................................................................

170

v

LIST OF TABLES
TABLE

Page
1.

Sex o f R e s p o n d e n t s ..........................................................

75

2.

Age o f R e s p o n d e n t s ..........................................................

76

3.

G r a d e L e v e l o f R e s p o n d e n t s ......................................

76

4.

E d u c atio n a l Level o f R espondents'
F a t h e r s o r Male G u a r d i a n s ...............................

77

E d u c a tio n a l Level o f R espondents'
M o t h e r s o r F e m a l e G u a r d i a n s ..........................

78

O c c u p a t i o n a l Area o f R e s p o n d e n t s '
F a t h e r s o r m a l e G u a r d i a n s ...............................

79

O c c u p a t i o n a l Area o f R e s p o n d e n t s '
M o t h e r s o r F e m a l e G u a r d i a n s ..........................

80

8.

I n c o me L e v e l o f R e s p o n d e n t s ' F a m i l y

81

9.

C l a s s i f i c a t i o n o f Schools

5.
6.
7.

1 0.
1 1.

1 2.

1 3.

1 4.

. . .

.....................................

82

C o u r s e s T a k e n By R e s p o n d e n t s Whi ch
I n c l u d e Ec o n o mi c C o n c e p t s ...............................

84

Number a n d P e r c e n t a g e o f S c h o o l s By
C l a s s i f i c a t i o n Whi ch O f f e r a n d
R e q u i r e a n E c o n o m i c s C o u r s e ..........................

85

T eachers' Expressed I n t e r e s t in
A tte n d in g Workshops, S em in ars, or
I n - s e r v i c e S e s s i o n s ...............................................

86

P ercentage o f C orrect Responses to
Q u e s t i o n s i n t h e T e s t o f E c o n o mi c
L i t e r a c y R e l a t e d t o t h e Seven
E c o n o mi c C o n t e n t C a t e g o r i e s ..........................

88

Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the Test
o f Economic L i t e r a c y R e l a t e d t o
C o n t e n t C a t e g o r y A:
The B a s i c
E c o n o mi c P r o b l e m
....................................................

90

vi

Page

TABLE
15.

16 .

1 7.

18.

19 .

20.

21.

22.

23.

Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the Test
o f Economic L i t e r a c y R e l a t e d t o
C o n t e n t C a t e g o r y B:
Ec o n o mi c
S y s t e m s .............................................................................

92

Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the lejat
o f Economic L i t e r a c y . R e l a t e d t o
C o n t e n t C a t e g o r y C:
Microeconomics:
R e s o u r c e A l l o c a t i o n and Income
D istribution
..............................................................

94

Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the Test
o f E c o n o mi c L i t e r a c y R e l a t e d t o
C o n t e n t C a t e g o r y D:
Macroeconomics:
E c o n o m i c S t a b i l i t y a n d Gr o wt h .....................

98

Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the Test
o f Economic L i t e r a c y R e l a t e d t o
C o n t e n t C a t e g o r y E:
The Wor l d
E c o n o m y .....................................................................

102

Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the Test
o f Economic L i t e r a c y R e l a t e d t o
C o n t e n t C a t e g o r y F:
Ec o n o mi c
Institutions
..................................................................
Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the Test
o f Economic L i t e r a c y R e l a t e d to
C o n t e n t C a t e g o r y G:
Concepts for
E v a l u a t i n g A c t i o n s and P o l i c i e s . . . .

104

Percentage o f C o rrect Responses to
t h e T e s t o f Economic L i t e r a c y
as Related to the Five Cognitive
L e v e l s ..................................................................

106

Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the Test
o f Economic L i t e r a c y R e l a t e d t o
C ognitive Level I:
K n o w l e d g e ..........................
Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the Test
o f E c o n o mi c L i t e r a c y R e l a t e d t o
C ognitive Level I I :
Comprehension
vii

103

.

.

107

109

TABLE

Page'
24.

25.

26.

27.

28.

29.

Number a n d P e r c e n t a g e o f C o r r e c t
R e s p o n s e s t o Q u e s t i o n s i n t h e Ig^Lfc.
o f E c o n o mi c L i t e r a c y R e l a t e d t o
C ognitive Level I I I :
Application . . .

112

Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the Test
o f E c o n o mi c L i t e r a c y R e l a t e d t o
C o g n i t i v e L e v e l I V: A n a l y s i s .....................

115

Number a n d P e r c e n t a g e o f C o r r e c t
Responses to Q uestions in the
o f E c o n o mi c L i t e r a c y R e l a t e d t o
C o g n i t i v e L e v e l V: E v a l u a t i o n
. . . .

117

A n a l y s e s o f V a r i a n c e f o r t h e Seven
Content C a te g o rie s Included in the
TEL I t e m s b e t w e e n C l a s s A, B, C, a nd
S e c o n d a r y Area V o c a t i o n a l C e n t e r
S c h o o l s .............................................................................

120

Percentage o f C o rrect Responses to the
46 TEL Q u e s t i o n s f o r S e v e n C o n t e n t
C a t e g o r i e s a s a F u n c t i o n o f C l a s s A,
B, C, a n d S e c o n d a r y A r e a V o c a t i o n a l
Education Center School C l a s s i f i ­
cations
....................................................

122

Analyses o f Variance fo r the Five
C ognitive Levels Included in the
TEL I t e m s b e t w e e n C l a s s A, B, C, and
S e c o n d a ry Area V o c a t i o n a l C e n t e r
S c h o o l s ..............................................................................

124

Percentage o f C o rre c t Responses to the
46 TEL Q u e s t i o n s f o r F i v e C o g n i t i v e
L e v e l s a s a F u n c t i o n o f C l a s s A, B,
C, a n d S e c o n d a r y A r e a V o c a t i o n a l
Education Center School C l a s s i f i ­
c a t i o n s ..............................................................................

125

viii

CHAPTER 1
INTRODUCTION
In the e a r l y

1950s t h e b u s i n e s s e d u c a t i o n p r o f e s s i o n

made a c o m m i t m e n t t o d e v e l o p a mo r e v i g o r o u s p r o g r a m t o
improve and a d v a n c e economic e d u c a t i o n .

At t h a t t i m e t h e r e

wa s a c o n c e r n f o r t h e l o w l e v e l o f e c o n o m i c l i t e r a c y
United

States

(Daughtrey,

1982,

p. 7 ) .

r e s u l t o f t h a t c o m m i t m e n t wa s e v i d e n c e d
National

in the

One s i g n i f i c a n t
in

Business Education A sso c ia tio n ,

1959 when t h e

D e l t a Pi E p s i l o n ,

and t h e B u s i n e s s and O f f i c e D i v i s i o n o f t h e American Voca­
tional

Association unified

P o l i c i e s Commission f o r
(PCBEE).
better

The g o a l s

t o o r g a n i z e and s p o n s o r th e

B u s i n e s s a nd E c o n o mi c E d u c a t i o n

o f t h e Commission were t o b r i n g a b o u t a

u n d e r s t a n d i n g o f what c o n s t i t u t e s b u s i n e s s and e c o ­

n o mi c e d u c a t i o n a n d t o a s s i s t t h o s e c o n c e r n e d w i t h t h e t o t a l
education

o f young p e o p l e

Since

(PCBEE,

19 7 9 ,

p.

40).

1959 e d u c a t o r s h a v e made n u m e r o u s a t t e m p t s t o

r e f i n e and a c h i e v e

th e Commission's g o a l s in p r a c t i c e .

1969 t h e PCBEE p u b l i s h e d a p o l i c y s t a t e m e n t ,

In

"The R o l e o f

B u s i n e s s E d u c a t i o n i n E c o n o mi c E d u c a t i o n , " w h i c h wa s l a t e r
included with other

statem ents in the P o li c ie s

f o r B u s i n e s s a nd E c o n o m i c E d u c a t i o n
ment r e p o r t e d

1959-1979.

Commission
The s t a t e ­

a concern for b u siness ed u catio n 's r o l e

d e v e l o p i n g an u n d e r s t a n d i n g o f e c o n o m ic s:

in

2
A lthough o p p o r t u n i t i e s to d e v e l o p economic u n d e r­
s t a n d i n g e x i s t a t a l l g r a d e l e v e l s and i n s e v e r a l
s u b j e c t m a t t e r a r e a s , b u s i n e s s e d u c a t i o n , mor e t h a n
other f i e l d s , d e a ls with the very th in g s t h a t econo­
mics i s about.
An e c o n o m i c s y s t e m i s s i m p l y an
a r r a n g e m e n t f o r s a t i s f y i n g human w a n t s .
In the
U n i t e d S t a t e s , 90 p e r c e n t o f t h e g o o d s a n d s e r v i c e s
p e o p l e b uy t o s a t i s f y t h e i r w a n t s a r e p r o d u c t s o f
business.
B u s i n e s s p r o v i d e s employment f o r s e v e n
out of e ig h t workers in t h i s country.
Business,
t h e r e f o r e , p l a y s a s i g n i f i c a n t r o l e i n o u r economy
(p. 20).
Another o r g a n i z a t i o n ,
E d u c a t i o n ( JCEE) ,
education.
business,

t h e J o i n t C o u n c i l on E c o n o mi c

a l s o h a s promoted t h e t e a c h i n g o f economic

The JCEE was f o u n d e d i n
labor,

agriculture,

c o n c e r n e d a b o u t t h e low l e v e l
United S ta t e s .

C urrently,

1949 b e c a u s e l e a d e r s i n

g o v e r n m e n t , and e d u c a t i o n were
o f economic l i t e r a c y

t h e JCEE i s

governmental education d e liv e r y

in the

t h e l a r g e s t non­

system in th e c o u n tr y .

Fo r

the p a s t tw e n ty - f iv e y ears the N atio n al Business Education
A s s o c i a t i o n (NBEA) a n d D e l t a

P i E p s i l o n (DPE) h a v e d e v e l o p e d

a c l o s e w o r k i n g r e l a t i o n s h i p w i t h t h e J o i n t C o u n c i l on
Ec o n o mi c E d u c a t i o n t o i n c r e a s e t h e e c o n o m i c l i t e r a c y l e v e l
of

students.
Frankel

Education c a l l e d
applies

( 1 9 7 0 ) o f t h e J o i n t C o u n c i l on E c o n o mi c
f o r mo r e e c o n o m i c e d u c a t i o n r e s e a r c h a s i t

t o t h e b u s i n e s s e d u c a t i o n f i e l d and f o r b u s i n e s s

e d u c a t i o n c u r r i c u l u m r e v i s i o n s t o e n s u re a d e q u a te economics
coverage

( p.

17 0 ) .

He a d d e d t h a t t o p r e p a r e s t u d e n t s f o r

employment i n th e b u s i n e s s w o r l d , a c u r r i c u l u m b a l a n c e must
e x i s t b e t w e e n g e n e r a l e d u c a t i o n and s k i l l
Frankel continued:

learnings.

3
Any company e m p l o y e e s h o u l d be p r o f i c i e n t i n
t h e s k i l l s o f h i s p o s i t i o n , b u t he c a n n o t be an
e f f e c t i v e p a r t i c i p a n t i n company o p e r a t i o n s i f h e
f a i l s t o u n d e r s t a n d t h e ec on omics o f t h e company's
operation.
His o p p o r t u n i t i e s fo r advancem ent, h i s
m o t i v a t i o n to u t i l i z e h i s t a l e n t s most e f f i c i e n t l y ,
h i s r e m u n e r a t i o n , a nd h i s u n d e r s t a n d i n g o f c o r p o ­
r a t e d e c i s i o n s w ou ld be s e v e r e l y l i m i t e d w i t h o u t a
k n o w l e d g e o f e c o n o m i c a n a l y s i s ( p. 167) .
Frankel stated th a t
i n t o t h e program f o r
ment s t i l l

the i n t e g r a t i o n o f economic c o n c e p ts
the a c q u i s i t i o n of s k i l l s

t o be t a c k l e d

Recent s tu d ie s

(p.

i s an a s s i g n ­

168) .

i n d i c a t e t h a t young p e o p l e i n t h e

U n i t e d S t a t e s h a v e some u n d e r s t a n d i n g o f e c o n o m i c s a n d how
to a p p ly t h a t knowledge.
students

E c o n o m i c s i s b e i n g t a u g h t t o mor e

t h a n i n p r e v i o u s y e a r s , b u t mor e n e e d s t o be d o n e

to prep are e c o n o m ic a lly informed s tu d e n ts
pp.

(Clow,

1982,

36-37).
S t a t e m e n t o f t h e Problem
Th e m a j o r p r o b l e m o f t h i s s t u d y w a s t o a s s e s s t h e

economic know ledge o f s e l e c t e d M ic h ig a n b u s i n e s s e d u c a t i o n
stu d e n ts a t the secondary l e v e l .
status

The e c o n o m i c l i t e r a c y

o f t h e s t u d e n t s ' k n o w l e d g e was m e a s u r e d by u s i n g t h e

T e s t o f Ec o n o mi c L i t e r a c y .

Ea c h q u e s t i o n i n t h e t e s t was

c a t e g o r i z e d by a c o n t e n t c a t e g o r y a n d c o g n i t i v e l e v e l
( A p p e n d i c e s D a n d E) .

D e m o g r a p h i c a nd r e l a t e d

inform ation

were a l s o c o l l e c t e d .
The s p e c i f i c r e s e a r c h q u e s t i o n s a d d r e s s e d i n t h e
p r e s e n t s t u d y w e r e d r a w n f r o m two m a j o r a r e a s :
and r e l a t e d

i n f o r m a t i o n and d e s c r i p t i v e

demographic

information.

4

PsmogLajhic-.afld-R.ela.ted-Infpr,ma.tiflH
1.

What i s

who w e r e t e s t e d
grade;

the composite p r o f i l e of the stu d e n ts

f o r c u r r e n t economic knowledge:

p a r e n t s ' or g u a r d i a n s ' e d u c a t i o n a l

p a t i o n a l a r e a , and income l e v e l ;

sex;

background,

age;
occu­

and c l a s s i f i c a t i o n o f s e c ­

ondary s c h o o l?
2.

What i s

who w e r e t e s t e d

the composite p r o f i l e of the s tu d e n ts

i n terms of a p r e v io u s economics course

and/or r e l a t e d courses?
basic

business,
3.

Examples o f r e l a t e d c o u r s e s a r e

m arketing,

and consumer.

I s an e c o n o m ic s c o u r s e o f f e r e d and r e q u i r e d a t

t h e s c h o o l s where t h e s t u d e n t s were t e s t e d ?
4.

To w h a t e x t e n t do t h e t e a c h e r s e x p r e s s a n i n t e r ­

e s t in a tte n d in g workshops,

seminars,

or i n - s e r v i c e

programs

t o l e a r n mor e a b o u t m e t h o d s o f i n t e g r a t i n g e c o n o m i c c o n c e p t s
into th e ir curriculum?

P„esfir.lpti.v£-Jj£flrma.tlo n
5.

Which o f t h e s e v e n c o n t e n t a r e a s do s t u d e n t s

u n d e r s t a n d t h e m o s t a n d t h e l e a s t a s e v i d e n c e d by t h e i r
s c o r e s o n t h e T e s t o f E c o n o mi c L i t e r a c y (TEL)?
content categories

The s e v e n

are:

A.

The B a s i c E c o n o mi c P r o b l e m

B.

E c o n o mi c S y s t e m s

C.

Microeconomics:
R e s o u r c e A l l o c a t i o n and
I n c o me D i s t r i b u t i o n

D.

Macroeconomics:
Growth

E.

The Wo r l d Economy

Ec o n o mi c S t a b i l i t y

and

5
F.

E c o n o mi c I n s t i t u t i o n s

G.

Concepts for
Policies

6.

E v a l u a t i n g E c o n o mi c A c t i o n s and

In which c o g n i t i v e l e v e l s a r e s t u d e n t s the

s t r o n g e s t a n d w e a k e s t a s e v i d e n c e d by t h e i r

a c h i e v e m e n t on

q u e s t i o n s f r o m t h e T e s t o f Ec o n o mi c L i t e r a c y
d es ig n e d to measure th o s e l e v e l s ?

(TEL) w h i c h a r e

The f i v e c o g n i t i v e l e v e l s

are:
I.
II.
III.
I V.
V.

Knowledge
Comprehension
A pplication
Analysis
Evaluation

7.

Is the average percentage of c o r r e c t responses

w i t h i n c o n t e n t c a t e g o r i e s a nd f o r c o g n i t i v e

levels signifi­

c a n t l y d i f f e r e n t a c ro ss the four c l a s s i f i c a t i o n s of schools
represented

in the p re s e n t study?

An a t t e m p t wa s made t o i d e n t i f y a n d r e p o r t p a t t e r n s
f r o m t h e ma s s o f " r a w d a t a ” w h i c h e m e r g e d t h r o u g h i n t e r p r e ­
ta tio n of data.

The s t u d e n t s ' s c o r e s w e r e d e s c r i b e d

terms of fre q u e n c ie s

in

and p e r c e n t a g e s .
Purpose of th e Study

The p r i m a r y p u r p o s e i n u n d e r t a k i n g
provide business education teach ers,

this

educators,

s t u d y was t o
and s t a t e

department personnel with inform ation about basic under­
s t a n d i n g o f economic c o n c e p t s and c o g n i t i v e
selected

levels

group o f b u s i n e s s e d u c a t i o n s t u d e n t s .

The

of a

i n s t r u m e n t u s e d a s a g u i d e w a s t h e T e s t o f E c o n o mi c L i t e r a c y
(TEL), w h i c h w a s d e v e l o p e d by t h e J o i n t C o u n c i l on E c o n o mi c
Education.
1.

Some a d d i t i o n a l

To i d e n t i f y we a k a n d s t r o n g e c o n o m i c c o n c e p t

c a t e g o r i e s among t h e
2.

p u r p o s e s were:

students tested;

To p r o v i d e a n a s s e s s m e n t f o r b u s i n e s s e d u c a t i o n

teachers as a ra tio n a le

for considering a g reater in te g ra ­

t i o n o f economic c o n c e p t s i n t o th e b u s i n e s s e d u c a t i o n
cu rr iculum;
3.

To p r o v i d e p l a n n e r s a n d i m p l e m e n t e r s w i t h i n f o r ­

m a t i o n f o r u s e i n t h e d e v e l o p m e n t and d i s s e m i n a t i o n o f
economic i n s t r u c t i o n a l m a t e r i a l .
B a c k g r o un d o f t h e S t u d y
Business ed ucatio n as a d i s c i p l i n e has encouraged
th e i n t e g r a t i o n o f economic c o n c e p t s i n t o

its

curriculum .

Some e x a m p l e s o f c o u r s e s w i t h i n t h e b a s i c b u s i n e s s , m a r k e t ­
ing,

and consumer a r e a s i n w hi ch a t t e m p t s a t i n t e g r a t i o n

h a v e b e e n made a r e g e n e r a l / b a s i c b u s i n e s s ,

consumer e c o ­

n o m ic s , d i s t r i b u t i v e e d u c a t i o n , and v o c a t i o n a l b u s i n e s s /
office

education.

I n e a c h a r e a a s o me wh a t d i f f e r e n t

a p p r o a c h i s u s e d when i n t e g r a t i n g e c o n o m i c s .

These a r e a s

are b r i e f l y d e s c rib e d below.
B asic.B usiness
General B usiness.

A general business course in t r o ­

duces s t u d e n t s to th e b u s i n e s s w o rld in which th ey l i v e .
The c o u r s e

in c lu d e s the r o l e

and p u r p o s e o f b u s i n e s s i n our

economic system .

Ec o n o mi c c o n c e p t s a r e i n t e g r a t e d

v id e a b a s ic u n d e r s ta n d in g of economics e s s e n t i a l
citizen
p.

to pro­
to every

i n o u r c o m p l i c a t e d s o c i e t y ( H o p k i n s and P r i c e ,

1975,

1).
Advanced B a s i c B u s i n e s s .

An a d v a n c e d b a s i c b u s i n e s s

c o u r s e d e v e l o p s a w a r e n e s s and u n d e r s t a n d i n g i n t h e a r e a s o f
s o c i e t a l and p e r s o n a l

economics.

For e x a m p l e , s t u d e n t s

l e a r n why a n e c o n o m i c s y s t e m i s a n e c e s s i t y o f s o c i e t y a n d
how i t

functions.

Also,

h e l p make t hem s k i l l f u l

s t u d e n t s d e v e l o p c o n c e p t s which can
b u y e r s a nd u s e r s o f g o o d s and s e r ­

v i c e s (H o p k in s and P r i c e ,

1 9 7 5 , p. 7 ) .

Consumer
Cons umer E c o n o m i c s .

Cons umer e c o n o m i c s p r o v i d e s

s t u d e n t s w ith economic i n f o r m a t i o n

n e e d e d by t h e c o n s u m e r .

The M i c h i g a n D e p a r t m e n t o f E d u c a t i o n ( 1 9 8 1 ) d e v e l o p e d and
p u b l i s h e d t h e Cons umer E c o n o m i c s E d u c a t i o n G u i d e l i n e s .

The

c u r r i c u l u m g u i d e r e c o m m e n d s m a t e r i a l s w h i c h may b e u s e d f o r
t e a c h i n g consumer ec o no m ic s a s a s e p a r a t e c o u r s e or as p a r t
of other

c o u r s e s ( p.

1).

One g o a l

is to have stu d en ts

r e l a t e economic p r i n c i p l e s t o t h e f u n c t i o n s o f t h e m a r k e t ­
place

( p.

4).

The g u i d e l i n e s e m p h a s i z e t h a t b u s i n e s s e s and

c o n s u m e r s h a v e m a j o r m i s c o n c e p t i o n s a b o u t e a c h o t h e r , and
both

need t o know t h e b a s i c p r i n c i p l e s

o f t h e U.S. e c o n o m i c

s y s t e m a s w e l l a s be a w a r e o f t h e i n t e r r e l a t e d r o l e s

of

co n s u m e rs , b u s i n e s s , and g o v e r n m e n t i n i n f l u e n c i n g t h e e c o ­
nomic s y s t e m ( p.

2).

Dr.

John P o r te r ,

State

Superintendent

o f P u b l i c I n s t r u c t i o n a t t h e t i m e he a p p o i n t e d t h e

g u id e lin e s committee,

recognized "th at educating c itiz e n s

w i l l u l t i m a t e l y h e l p c r e a t e an economic system t h a t b e t t e r
services

the

needs o f b o t h p r o d u c e r s and co n s u m e rs " (p.

2).

Marketing
Courses i n t h i s area a re o f te n r e f e r r e d
t r i b u t i v e education.
c o n c e p t s and c o v e r

U n i t s i n c l u d e econo mic and m a r k e t i n g

s u c h t o p i c s a s t h e n a t i o n a l e c on omy ,

economic f u n d a m e n t a l s ,
and s e r v i c e s ,

to as d i s ­

p r o d u c t s and p r i c e s ,

m ark etin g goods

and o r g a n i z e d l a b o r ( I n t e r s t a t e D i s t r i b u t i v e

E ducation C urriculum Consortium,

1980 ,

p.

14).

Vocational B u sin ess/O ffice Education
Vocational education courses,
u n d e r s t a n d i n g and s k i l l s

by t h e i r

nature,

blend

which i n c l u d e economic c o n c e p t s .

The v o c a t i o n a l b u s i n e s s / o f f i c e p r o g r a m s a r e s e l e c t e d by
secondary l e v e l
ployability.

s t u d e n t s i n t e r e s t e d i n e n h a n c i n g t h e i r em­

They may o r may n o t h a v e p r e v i o u s l y t a k e n s u c h

courses as g e n e ra l/b a s ic business,
economics.
its

consumer e c o n o m ic s ,

or

The M i c h i g a n S t a t e B o a r d o f E d u c a t i o n ( 1 9 8 4 ) i n

R e f e r e n c e Guide f o r

V o c a t i o n a l E d u c a t i o n (1984) e x p l a i n s

t h a t v o c a t i o n a l b u s i n e s s e d u c a t i o n programs p r e p a r e s t u d e n t s
for g ain fu l

e m p l o y m e n t i n b u s i n e s s o c c u p a t i o n s t h a t do n o t

n e c e s s a r i l y r e q u i r e advanced t r a i n i n g or a c o l l e g e / u n i v e r ­
sity

degree

(p.

1).

The g u i d e d e t a i l s

t h e p r og ra m s and

goals:
V ocational Business Education c o n s is ts of
c o u r s e s a nd p r a c t i c a l e x p e r i e n c e s o r g a n i z e d i n t o
programs of i n s t r u c t i o n to p r o v i d e o p p o r t u n i t i e s

9
f o r s t u d e n t s t o p r e p a r e f o r or a d v a n c e i n s e l e c t e d
b u s i n e s s / o f f i c e o c c u p a t i o n s ( p . 1) .
The m a j o r g o a l s f o r

vocational business education

are:
1.
To d e v e l o p k n o w l e d g e , a t t i t u d e s , a n d s k i l l s i n
p r e p a r a t i o n f o r g a i n f u l and m e a n i n g f u l o c c u p a t i o n s , i n ­
c l u d i n g new a n d e m e r g i n g o c c u p a t i o n s .
2.
To e n c o u r a g e a d v a n c e m e n t t o w a r d h i g h l y s k i l l e d
a n d t e c h n i c a l o c c u p a t i o n s a nd c a r e e r s .
3.
To p r o v i d e f o r s t u d e n t s t h e b e s t a n d m o s t me a n ­
i n g f u l e x p e r i e n c e s i n l e a r n i n g a nd a c q u i r i n g j o b s i n
b u s i n e s s and o f f i c e o c c u p a t i o n s ( p . 1).
Need f o r

the.Study

S e v e ra l s tu d ie s have sought to determine the eco­
nomi c k n o w l e d g e o f s t u d e n t s .

For ex a m p le ,

E c o n o mi c L i t e r a c y was a d m i n i s t e r e d

the Test of

i n 1977 u s i n g a n a t i o n ­

w i d e s a m p l e o f e l e v e n t h and t w e l f t h g r a d e s t u d e n t s .

How­

ever,

few s t u d i e s h a v e b e e n d o n e i n t h e b u s i n e s s e d u c a t i o n

area,

p a r tic u la r ly regarding students in v ocational business

education

programs.

C ourses which i n t e g r a t e u n d e r s t a n d i n g o f economics
in to the c u rricu lu m ,

such as g e n e r a l / b a s i c

s u me r e c o n o m i c s , e i t h e r

are

o ffe re d a t an a p p r o p r ia te

b u s i n e s s or c on­

n o t a v a i l a b l e o r may n o t b e

time fo r s t u d e n t s p r e p a rin g fo r a

vocational business education career

path.

These s t u d e n t s

f o l l o w d i f f e r e n t s c h e d u l e s b e c a u s e o f p e r s o n a l c h o i c e s and
time c o n s t r a i n t s .
eith er are

In ad d itio n ,

not o ffe re d or,

if

courses

offered,

entitled
are

"Economics"

n o t t a k e n by a

m ajority of the v o c a tio n a l b u sin ess education stu d e n ts.

10
Mo s t t y p i c a l h i g h s c h o o l s , h o w e v e r , do o f f e r
p r i n c i p l e s in s o c ia l

economic

s t u d i e s c l a s s e s t a k e n by a l l

Busch (1982) e x p r e s s e d c o n c e r n t h a t

students.

students en ro lled

i n w o r k - s t u d y or b l o c k - t i m e p r o g ra m s m ig h t n o t be a b l e to
s c h e d u l e an a d v a n c e d b a s i c b u s i n e s s c o u r s e d u r i n g t h e i r
final

year.

He a d d e d t h a t v o c a t i o n a l

j u s t a s e f f i c i e n t a s any o t h e r
and p e r s o n a l

s t u d e n t s i n h a n d l i n g economic

b u s i n e s s p r o b l e m s (p.

B l o c k u s (1983) s t a t e d :

s t u d e n t s n e e d t o be

112) .

"The n e e d f o r

teaching

eco­

nomic l i t e r a c y i s e v e n g r e a t e r t o d a y t h a n a t any ti m e i n our
n a t i o n ’ s h i s t o r y ” ( p.

24).

Daughtrey

(1982)

stated:

"The

p r e v a i l i n g e c o n o m i c c o n d i t i o n s i n d i c a t e t h e n e e d f o r mor e
e m p h a s i s on e c o n o m i c c o n c e p t s "
(1982) p o i n t e d o u t t h a t

(p.

11) .

However,

Brown

t o o much e m p h a s i s o n e c o n o m i c c o n ­

c e p t s a t lo w e r l e a r n i n g l e v e l s l e a d s t o r o t e l e a r n i n g and a
l a c k o f i n t e r e s t by t h e

students

(p.

94).

Cl ow ( 1 9 8 3 ) e m p h a s i z e d t h a t t h e r e a r e

t wo a p p r o a c h e s

t o d e v e l o p i n g an u n d e r s t a n d i n g o f b a s i c eco no mi c and meas­
urement concepts.

One i s t h e p r a c t i c a l

second i s " a n a l y t i c a l

and c o n c e p t u a l . "

"how t o " a n d t h e
Cl ow c i t e d

w h i c h " s h o w s t h a t mo r e n e e d s t o b e d o n e i f we a r e

a study
to

prepare

ec o n o m ic a lly informed s tu d e n t s both to b u i l d u n d e rsta n d in g
o f e c o n o m i c s and t h e a p p l i c a t i o n o f t h a t k n o w l e d g e " ( p . 3 6 ) .
The M i c h i g a n v o c a t i o n a l l y r e i m b u r s e d b u s i n e s s e d u c a ­
tion teachers prepare

s e c o n d a r y s t u d e n t s who h a v e c h o s e n a nd

are pursuing a p a r t ic u la r

career goal.

b i l i t y o f th e se t e a c h e r s to p ro v id e

It

i s the re sp o n s i­

instruction

in a

11
ca p s to n e type of c o u r s e which l e a d s
c e s s f u l performance in t h e i r
o f work.

S c r i v e n (1975)

to the

selected

students'

suc­

v o c a tio n in the world

stated:

The r e s p o n s i b i l i t y t o e n c o u r a g e p r e - s e r v i c e a n d
i n s e r v i c e t e a c h e r s t o b e t t e r u n d e r s t a n d p o l i t i c a l and
s o c i o - e c o n o m i c i s s u e s i s g r e a t b e c a u s e many s e c o n d ­
a r y s t u d e n t s i n b u s i n e s s c l a s s e s w i l l end t h e i r
formal education with the tw e lf th grade.
Stress
s h o u l d be p l a c e d o n t h e i m p o r t a n c e o f t e a c h e r
r e c o g n i t i o n o f t h e i r r e s p o n s i b i l i t i e s and o b l i g a ­
t i o n s t o c h a l l e n g e and d e v e l o p a n i n fo r m e d
c i t i z e n r y (p. 35).
D a u g h tre y (1970) s t a t e d
tional

the fo llo w in g about voca­

education subjects:

There a r e o p p o r t u n i t i e s i n most of th e s e
s u b j e c t s t o i n t e g r a t e economic t o p i c s i n t o th e s u b ­
j e c t m a t t e r , e s p e c i a l l y i n showing r e l a t i o n s h i p s
and r e i n f o r c i n g t h e l e a r n i n g from o t h e r c o u r s e s
(p. 101).
She a d d e d :
I n c l u d i n g e c o n o m i c u n d e r s t a n d i n g s w i t h i n newer
c u r r i c u l a r d e s i g n s , such as b l o c k programming, simu­
l a t i o n , a nd t a s k c l u s t e r s , i s v i t a l t o t h e p r e p a r a ­
tio n of the s tu d e n ts for o f f ic e occupations in the
f u t u r e (p. 101).
To s u m m a r i z e ,

i t a p p e a r s t h a t mo r e e m p h a s i s i s

needed on t h e t e a c h i n g o f economic c o n c e p t s so t h a t s t u d e n t s
c a n b e mor e e f f e c t i v e i n h a n d l i n g e c o n o m i c a n d p e r s o n a l
b u sin e ss problems.
emphasized

Appropriate le a rn in g l e v e l s

to m aintain the stu d e n ts '

s ta n d i n g o f economics i s
dents,

particularly

with the

tw elfth

vital

interest.

need t o be
An u n d e r ­

to o ffic e occupations s t u ­

t h o s e who e n d t h e i r

formal education

grade.

S e v e r a l a r t i c l e s have s t a t e d t h a t the b u s in e s s edu­
c a t i o n c u r r i c u l u m n e e d s t o c h a n g e a n d gr ow w i t h t h e

12
challenges of technological evolution.
economic l i t e r a c y

The i m p o r t a n c e o f

i s being reemphasized as w e l l as the

s k i l l s for tech n o lo g ical

literacy,

s u c h a s wor d p r o c e s s i n g .

The Teat of. Econo.mig. Literacy. ( TEL) ,
t h e J o i n t C o u n c i l o n E c o n o mi c E d u c a t i o n ,
t e s t i n g economic knowledge.
on a n a t i o n w i d e b a s i s .

p u b l i s h e d by

is a tool

T h is i n s t r u m e n t h a s been used

A c c o r d i n g t o Tony S u g l i a a n d J o y c e

Murphy o f t h e J o i n t C o u n c i l on E c o n o mi c E d u c a t i o n ,
o r i g i n a l c o p ie s of the t e s t have been s o ld .
grouped i n t o
levels.

for

150,000

T h e TEL i s

c o n t e n t c a t e g o r i e s and c o g n i t i v e l e a r n i n g

Because o f the concern f o r th e economic l i t e r a c y

of

f u t u r e o f f i c e w o r k e r s and t h e c o n c e r n f o r t h e c o g n i t i v e
l e a r n i n g l e v e l s a t which economic c o n c e p ts a r e t a u g h t ,
a s s e s s i n g th e economic knowledge o f secondary b u s i n e s s edu­
cation

s t u d e n t s w i t h t h e TEL s eemed m o s t a p p r o p r i a t e

to t h i s

w riter.
I t was a n t i c i p a t e d
w ill

th a t the fin d in g s of t h i s

study

p ro v id e u s e f u l data to b u s in e s s e d u catio n t e a c h e r s ,

to

p r o p o s a l w r i t e r s f o r i n s t r u c t i o n a l d e v e l o p m e n t , and t o e d u ­
c a t o r s t e a c h i n g p r e - v o c a t i o n a l and v o c a t i o n a l l e v e l methods
cour s e s .
Assumptions
C e r t a i n a s s u m p t i o n s a r e made w h i c h s h o u l d be
recognized.
1.

The r e s p o n d e n t s a n s w e r e d t h e q u e s t i o n n a i r e s and

te s ts as accurately as possible.

13
2.

The t e s t s w e r e a d m i n i s t e r e d a n d c o l l e c t e d w i t h i n

the ap p ro p riate
3.

The

time l i m i t s .
t e a c h e r s who a d m i n i s t e r e d

t h e t e s t s were

o b j e c t i v e a nd n o n b i a s e d w h i l e d i s t r i b u t i n g
4.

The s t u d e n t s t e s t e d

o f secondary
rent

the t e s t s .

came f r o m a t y p i c a l m i x t u r e

stu d e n t backgrounds p rio r

to e n te rin g

the c u r­

class.
5.

The s t u d e n t s h a d t a k e n a r e q u i r e d

c o u r s e which t r a d i t i o n a l l y

social

studies

i n c l u d e s economic c o n c e p t s .

Delim itations
T h i s s t u d y h a s c e r t a i n d e l i m i t a t i o n s which s h o u l d be
recognized.
1.
were
with

Onlythe economic c o n c e p ts l i s t e d

consideredas basic.
varying

in t h i s

O t h e r r e s e a r c h may l i s t

v o c a b u l a r y or o r d e r .

study

concepts

The c o n c e p t s t h a t w e r e

p a r t o f t h i s s t u d y h a v e b e e n u s e d i n more t h a n 200 D e v e l o p ­
m e n t a l E c o n o mi c E d u c a t i o n P r o g r a m (DEEP) c o o p e r a t i n g
throughout
2.

the United
The d a t a

schools

States.
for

t h i s r e s e a r c h were d e r i v e d from th e

c o m p l e t e d T e s t o f Economic L i t e r a c y i n s t r u m e n t an sw er s h e e t s
returned

and t h e c o m p l e t e d q u e s t i o n n a i r e s r e t u r n e d .
3*

How, w h e n ,

c o n c e p t s were i s s u e s
4.

and where t o t e a c h
n o t a d d r e s s e d by t h i s

t h e economic
study.

No a t t e m p t w a s made t o d e t e r m i n e t h e e c o n o m i c

c o n c e p t a r e a s or l e v e l s o f u n d e r s t a n d i n g d e s i r a b l e for
dents.

Only th e e x t e n t o f t h e i r u n d e r s t a n d i n g o f the

stu­

14
c o n c e p t a r e a s and t h e c o g n i t i v e
were

l e v e l s used in t h i s

study

identified.
5.

The e v a l u a t i o n o f t e a c h i n g e f f e c t i v e n e s s w a s n o t

of concern here.
6.

No e f f o r t wa s made t o d e t e r m i n e w h i c h e c o n o m i c

c o n c e p t s n e e d t o be t a u g h t i n t h e b u s i n e s s e d u c a t i o n c u r r i c ­
ulum.

Only the as se s m e n t o f th e economic background o f the

s t u d e n t s wa s a t t e m p t e d .

Limlta.tlQ.ns
1.

This study inclu d ed o nly s tu d e n ts e n r o l l e d

in

c l a s s e s t a u g h t by V o c a t i o n a l O f f i c e B l o c k p r o j e c t t e a c h e r s .
2.

The t i m e o f d a y f o r

the t e s t i n g was n o t con­

3.

O n l y o n e t e s t wa s a d m i n i s t e r e d

trolled .

a p p r o p r i a t e measure o f the
4.

students'

The s t u d y wa s r e s t r i c t e d

t i o n m u s t be e x e r c i s e d

t o o b t a i n an

knowledge.
to

students tested .

Cau­

i f g e n e r a l i z a t i o n s a r e made b e y o n d t h a t

group.
5.

The q u e s t i o n n a i r e c o m p l e t e d by t h e r e s p o n d e n t s

was t h e means o f c o l l e c t i n g

personal

inform ation.

The d a t a

may b e l e s s a c c u r a t e t h a n i f o b t a i n e d t h r o u g h a p e r s o n a l
interview .
6.

This re se a rc h e r

did not a d m in iste r

b e c a u s e o f t h e number o f s t u d e n t s ,
time

frame.

the t e s t s

geographic lo c a tio n s ,

and

15
D e f i n i t i o n o f Te r ms
C e rta in term s used
1.
cognitive

s t u d y need t o be d e f i n e d .

C o g n i t i v e l e v e l s - The f i v e - l e v e l

schema o f

t a x o n o m y i s a v a r i a n t o f B e n j a m i n S. B l o o m ’ s

taxonomy.

The f i v e

application,
2.
gories are:

l e v e l s are knowledge, comprehension,

analysis,

and e v a l u a t i o n

(Soper,

1979,

p. 4) .

C o n t e n t c a t e g o r i e s - The s e v e n c o n t e n t c a t e ­
th e b a s i c economic problem ;

macroeconomics:
tion;

in t h i s

economic systems;

r e s o u r c e a l l o c a t i o n a nd i n c o me d i s t r i b u ­

microeconomics:

economic s t a b i l i t y

and g r o w th ;

the

w o r l d e c on omy ; e c o n o m i c i n s t i t u t i o n s ;

and c o n c e p t s f o r e v a l ­

u a t i n g economic a c t i o n s and p o l i c i e s

(Soper,

3.

19 79,

p.

3).

Economic e d u c a t i o n - A k n o w l e d g e o f ec o n o m ic s i s

p a r t o f the t o t a l e d u c a t i o n a l program p r o v id e d to h e l p a l l
s t u d e n t s p r e p a r e t o become e c o n o m i c a l l y i n f o r m e d .

When

i n t e g r a t i n g economic e d u c a t i o n i n t o th e v o c a t i o n a l b u s i n e s s
e d u c a t i o n program,

e m p h a s i s i s p l a c e d on b u i l d i n g a n u n d e r ­

s t a n d i n g o f e c o n o m i c c o n c e p t s a nd a p p l y i n g t h e k n o w l e d g e i n
the workplace.
4.

Ec o n o mi c u n d e r s t a n d i n g - The e s s e n c e o f e c o n o m i c

u n d e r s t a n d i n g l i e s i n b e i n g a b l e t o ma k e s e n s e o u t o f t h e
a r r a y o f economic i s s u e s c o n f r o n t i n g our

society.

Various

e l e m e n t s o f e c o n o m i c u n d e r s t a n d i n g m u s t be c o m b i n e d and
blended

so a s t o p r o v i d e a w o r k i n g k n o w l e d g e o f e c o n o m i c s

(Hansen, e t
5*

al.,

1 9 7 7 , p. 4).

P o l i c i e s C o m m i s s i o n f o r B u s i n e s s a nd Ec o n o mi c

E d u c a t i o n - The PCBEE i s a n o n g o i n g o r g a n i z e d g r o u p w h i c h

16
hopes to b r in g about a b e t t e r
assist

u n d e r s t a n d i n g o f b u s i n e s s and

those concerned with the t o t a l

e d u c a t i o n o f young

p e o p l e ( PCBEE, 1 9 7 9 , p. 4 0 ) .
6.

V o catio n al b u sin ess education i n s t r u c t i o n - This

type o f i n s t r u c t i o n

s e e k s t o d e v e l o p u n d e r s t a n d i n g s and

c o m p eten cies needed f o r

s t u d e n t s t o become u s e f u l a s w e l l a s

s p e c ia liz e d in occupational
7.

skills.

V o c a t i o n a l b u s i n e s s e d u c a t i o n program t e a c h e r -

Such a t e a c h e r

i s p a r t o f an o r g a n i z e d program o f i n s t r u c ­

t i o n which has a u t h o r i z a t i o n

to r e c e iv e

funding (reim burse­

m e n t ) f r o m t h e S t a t e o f M i c h i g a n u n d e r PL 9 4 - 4 8 2 .
t e a c h e r h o l d s an a n n u a l ,

The

tem porary, or r e g u l a r v o c a t i o n a l

a u t h o r i z a t i o n and p r i m a r i l y i n s t r u c t s s t u d e n t s e n r o l l e d

in

c l a s s e s w h i ch p r e p a r e them f o r a s p e c i f i c o c c u p a t i o n .
8.
gram - S i n c e

V o c a t i o n a l O f f i c e B l o c k (VOB) I n - s e r v i c e
1968 t h i s p r o g r a m h a s b e e n c o o r d i n a t e d

Pro­

through

t h e C o l l e g e o f E d u c a t i o n and L i f e l o n g E d u c a t i o n P r o g r a m s ,
Michigan S t a t e U n i v e r s i t y .
was c o n d u c t e d ,

I n 1981, a t t h e t i m e t h e t e s t i n g

th is project a ttra cted

98 b u s i n e s s / o f f i c e

e d u c a t i o n t e a c h e r s f r o m 76 l o w e r M i c h i g a n s c h o o l s .
p r o j e c t te a c h e r s a tte n d four one-day i n - s e r v i c e

The VOB

noncredit

s e s s i o n s a t Michigan S t a t e U n i v e r s i t y each s c h o o l y e a r .
these meetings, p a r t i c i p a n t s have the o p p o rtu n ity to
their

knowledge,

effective

sk ills,

increase

a n d / o r a t t i t u d e s t o become mor e

teach ers of business education.
9.

V o c a t i o n a l O f f i c e B l o c k t e a c h e r - Such a

teacher holds a c e r t i f i c a t e for

At

vocational authorization

17
under

the O ffice

E d u c a t i o n (OE) c o d e

14.0000 a r e a .

In

May,

1 983, t h i s p r o g r a m c o d e number w a s c h a n g e d by t h e M i c h i g a n
S t a t e Board o f E d u c a t i o n t o a C l a s s i f i c a t i o n o f I n s t r u c t i o n
P r o g r a m s ( CI P) 07 d e s i g n a t i o n .
not e x c lu s iv e ly ,

The t e a c h e r

typically,

but

teaches vocational business education

subjects.
10.

V o c a t i o n a l - T e c h n i c a l E d u c a t i o n S e r v i c e ( V-TES)

This i s a s e r v i c e a re a w ith in the Michigan Department o f
Education charged w ith a d m in iste rin g v o c a t i o n a l - t e c h n i c a l
education

in

the

state.
O r g a n i z a t i o n o f th e Study

This study i s org anized
Chapter
study

into

five chapters.

1 p r o v i d e s a n i n t r o d u c t i o n and s t a t e s t h e

problem.
Chapter 2 re v ie w s the l i t e r a t u r e p e r t i n e n t to the

study.
Chapter

3 d e s c rib e s the re s e a rc h design,

d e s c rip tio n of the
Chapter

s tu d y and r e s e a r c h

including a

proced ures used.

4 p r e s e n t s and a n a l y z e s t h e d a t a .

Chapter 5 r e p o r t s the major c o n c l u s i o n s ,
the fin d in g s ,

and recommends a r e a s f o r

further

summarizes

study.

CHAPTER 2
REVIEW OF THE LITERATURE
Presented in t h i s chapter
p e r t i n e n t to t h i s

study.

ERIC a n d a m a n u a l

search.

The m a t e r i a l s w e r e o b t a i n e d by an

For most o f t h i s c e n t u r y ,
have supported
years,

i s a review of l i t e r a t u r e

a u th o r itie s in education

t h e need f o r economic e d u c a t i o n .

In r e c e n t

me mb e r s o f l e a d i n g o r g a n i z a t i o n s h a v e e n c o u r a g e d

s c h o o l d i s t r i c t s to i n t e g r a t e economic c o n c e p t s i n t o t h e i r
k indergarten through tw e lf th grade c u r r ic u la
t i z e d and p r o g r e s s i v e p a t t e r n .
tion

For y e a r s ,

in a systema­

business educa­

s u p p o r t e r s h a v e c o o p e r a t e d i n em p h a s iz in g economic

education in b u s in e s s ed u catio n ,
ness subjects.

p a r t i c u l a r l y in b asic b u s i­

E f f o r t s to t e a c h economic c o m p e te n c ie s

s h o u l d e n a b l e i n d i v i d u a l s t o i n c r e a s e t h e i r economic
literacy.
The b a c k g r o u n d a n d r e a d i n g s c i t e d

in t h i s chapter

e s t a b l i s h t h a t th e i n t e n t to i n t e g r a t e economic c o n c e p t s
into

t h e b u s i n e s s e d u c a t i o n c u r r i c u l u m i s n o t a new i d e a ,

and t h a t t h e need h a s been e s t a b l i s h e d
a better

economic u n d e r s t a n d i n g .

for

s tu d e n ts to have

Although the l i t e r a t u r e

is

l i m i t e d which s p e c i f i c a l l y p e r t a i n s to i n t e g r a t i n g economic
concepts into

th e v o c a t i o n a l b u s i n e s s e d u c a tio n programs,

18

it

19
i s s u f f i c i e n t when c o u p l e d w i t h i n f o r m a t i o n w h i c h s u p p o r t s
economics in

the g e n e r a l b u s i n e s s e d u c a t i o n programs.
Br o a d e n i ng t h e _ S a a a e _ Q £ - B u s i n e s s
Education;
Selected.. Readings

The L i t e r a t u r e t h r o u g h t h e E a r l v
In the e a r l y
referred

1900s,

1960s

b u s i n e s s e d u c a t i o n w a s c o mmo nl y

to a s com m e rc ia l e d u c a t i o n , and t h e m a j o r i t y o f

s t u d e n t s were male.

A l t h o u g h c h a n g e s h a v e o c c u r r e d , among

them a s h i f t t o a p r e d o m i n a n t l y f e m a l e p o p u l a t i o n ,

a con­

t i n u i n g theme o f b u s i n e s s e d u c a t o r s h a s be en t o e m p h a s iz e
t h e need to i n t e g r a t e economic c o n c e p t s i n t o

the high school

curr iculum.
For e x a m p l e ,

Sheppard

(1913)

states:

f o r c o n s i d e r a t i o n t h e s u b j e c t whose r a r e
cial

training

has been

P e r h a p s no o t h e r

tardily

"There rem ains

value for

commer ­

r e a l i z e d — economics . . . .

s u b j e c t i s com parable to economics in the

i n s p i r a t i o n i t g i v e s t h e s t u d e n t t o go o n w i t h h i s s t u d i e s
after

the

secondary

Sheppard a l s o

school

d a y s a r e o v e r " ( p.

209).

s t a t e s t h a t p r o p e r i d e a l s i n s e c o n d a r y commer ­

c i a l i n s t r u c t i o n a n d e d u c a t i o n i n v o l v e " v a s t l y mo r e t h a n
f a m i l i a r i t y w i t h a f ew s u c h s u b j e c t s a s a r i t h m e t i c , b o o k ­
keeping,

stenography,

and t y p e w r i t i n g "

More t h a n t h i r t y

y e a r s ago,

n i z e d a c h a n g e i n t h e demand f o r

( p.

209).

L e a d e r e r (1950) r e c o g ­

business education:

The o r i g i n a l i m p e t u s f o r t h e p r o v i s i o n o f a n e f f e c ­
t i v e program o f i n s t r u c t i o n in th e b u s i n e s s s u b j e c t s
came f r o m d e m a n d s f o r a d e q u a t e l y t r a i n e d o f f i c e w o r k e r s ;
m o r e r e c e n t l y t h e i m p e t u s h a s c o me f r o m t h e d e m a n d f o r a

20

c i t i z e n r y e q u i p p e d t o m e e t t h e many and d i v e r s i f i e d
e c o n o m i c p r o b l e m s o f o u r A m e r i c a n S o c i e t y ( p . 12) .
L i l e s ( 1 9 5 0 ) n o t e d t h a t some p e o p l e b e l i e v e
b u s i n e s s e d u c a t i o n ’’s h o u l d b e r e s t r i c t e d
knowledges,
all

sk ills,

basic

to in c lu d e those

a n d e c o n o m i c u n d e r s t a n d i n g s n e e d e d by

students re g a rd le s s of th e ir educational o b je c tiv e ,"

w hile o th e r s m aintain t h a t "basic b u sin ess should apply only
t o t h o s e k n o w l e d g e s and u n d e r s t a n d i n g s n e c e s s a r y f o r t h e
successful a p p lic a tio n of business s k i l l
situations"

in o f f ic e

(p. 9).

Tonne ( 1 9 5 1 ) c r i t i c i z e d

t h o s e who s u p p o r t t h e g o a l

of teaching only for f i r s t - j o b basic

skills:

"Teach n o th in g u n l e s s i t h a s immediate job
v a l u e " seems t o e x p r e s s i n one p h r a s e t h e c u r r e n t
c u l t in t r a i n i n g for business. . . . This a t t i t u d e
of s o -c a lle d P rogressive education has consequences
t h a t may be s e r i o u s .
F i r s t , i t r e s u l t s in a
tendency to te a c h nothing except the b a s ic s k i l l
needed to s e c u re the f i r s t job.
Moreover, t h i s
i s o l a t i o n p ro d u c e s measurement t e c h n i q u e s based
u po n w h o l l y u n b u s i n e s s l i k e w o r d s - a - m i n u t e s t a n d a r d
(p. 243).
Thus, a t

l e a s t t h r e e d e c a d e s a go t h e e m p h a s i s b e g a n

o f t e a c h i n g mo r e t h a n b a s i c
tions.

skills

in the o f f i c e occupa­

D i s c u s s i o n s e v o l v e d to i n c l u d e economic u n d e r s t a n d ­

ing in the t r a in i n g of in d i v i d u a l s .
A p p ro x im a te ly twenty y e a r s ago,
r e i t e r a t e d Sheppard’s p r e v io u s c a l l

Swans on ( 1 9 6 0 )

to widen th e d e f i n i t i o n

of business education:
J u s t a s e d u c a t i o n i n t h e b r o a d s e n s e i s no
longer ad e q u a te ly described in terms of the three
R ' s so b u s i n e s s e d u c a t i o n i s no l o n g e r p r o p e r l y
defined in terms of the simple t r i u m v i r a t e o f
b o o k k e e p i n g , s h o r t h a n d , and t y p e w r i t i n g ( p . 5 1 ) .

21

Sneden (1960) a l s o

stressed

preparing business education

general

education for

students:

I f e m p h a s i s i s p l a c e d upon t e r m i n a l a s p e c t s ,
two u n f o r t u n a t e r e s u l t s o c c u r :
( 1) A b l e y o un g
women, a n d some a b l e y o u n g men, a r e i n f l u e n c e d t o
ta k e employment i n s t e a d o f c o n t i n u i n g t h e i r educa­
tion.
( 2 ) The i m a g e o f b u s i n e s s e d u c a t i o n b e c o m e s
mo r e f i r m l y f i x e d a s v o c a t i o n a l a n d t e r m i n a l i n
th e e y e s o f th e p u b l i c and o t h e r b r a n c h e s o f
education . . . .
D e - e m p h a s i z e t h e t e r m i n a l and
emphasize the p r e p a r a t o r y c h a r a c t e r o f secondary
b u s i n e s s e d u c a t i o n (p. 3).
In a p e rso n a l
Crawford rem arked:

i n t e r v i e w w ith G ratz (1961),

"We m e r e l y d e s c r i b e b u s i n e s s ;

teach understandings.

A ctually,

T. J a m e s
we d o n ’t

o u r c o u r s e s do n o t b a c k up

our o b j e c t i v e s " (p. 31).
From h i s s t u d y o f f u n d a m e n t a l i s s u e s i n b u s i n e s s
education Gratz noted:
Business education tea c h e rs of general business
s u b je c ts should s t r i v e to accom plish the o b j e c t i v e s
o f d e v e l o p i n g u n d e r s t a n d i n g and a p p r e c i a t i o n o f our
b u s i n e s s economic system, p r o v i d e a background fo r
t h e s t u d y o f mo r e a d v a n c e d c o u r s e s i n b u s i n e s s , a n d
p r o v i d e s t u d e n t s w i t h some c o m p r e h e n s i o n o f c a r e e r
o p p o r tu n itie s in b u sin ess (p. 31).
G illia m (1961)

states:

For t h e most p a r t , b u s i n e s s e d u c a t o r s h a v e
l i m i t e d t h e m s e l v e s p r e t t y much t o a r a t h e r n a r r o w l y
defined area w ith in the su b d iv isio n of inform ation
handling.
T r a d i t i o n a l l y we h a v e s t u c k v e r y
c l o s e l y t o t y p e w r i t i n g , s h o r t h a n d , a nd b o o k k e e p ­
i n g . . . . We h a v e d o n e a l m o s t n o t h i n g i n t h e a r e a
o f e c o n o m i c e d u c a t i o n ( p . 152) .
G illiam r e i t e r a t e s :
B u s i n e s s e d u c a t i o n s h o u l d b e d o i n g mor e
t h a n t e a c h i n g t y p e w r i t i n g , s h o r t h a n d , a nd b o o k ­
keeping.
We a r e p r e p a r e d t o make a t r e m e n d o u s
c o n t r i b u t i o n t o s o c i e t y ; b u t u n t i l we make t h e
n e c e s s a r y a d j u s t m e n t s , we m u s t a c c e p t a c e r t a i n
a m o u n t o f j u s t i f i a b l e c r i t i c i s m ( p . 152) .

22

During th e

1950s and e a r l y

t o s h i f t from narrow ,

1960s t h e f o c u s c o n t i n u e d

term inal tra in in g

for

employment

t o w a r d p r e p a r i n g i n d i v i d u a l s f o r a c a r e e r by d e v e l o p i n g
their

u n d e r s t a n d i n g o f b u s i n e s s and

society.

I n s u m m a r i z i n g some o f t h e a u t h o r s ,

Lederer reco g ­

n i z e d t h e need f o r A m e r i c a n s t o be e q u i p p e d t o m ee t economic
problems.

Tonne c r i t i c i z e d

ness su b jects only

to

lim itin g the teaching of b u si­

securing the f i r s t

job.

Also,

Sneden

emphasized th e p r e p a r a t i o n o f th e b u s i n e s s e d u c a ti o n i n d i v i ­
d u a l f o r mor e t h a n t e r m i n a l

skills.

Crawford c a l l e d f o r the

t e a c h i n g o f econo mic u n d e r s t a n d i n g , and G r a t z s t r e s s e d t h e
i m p o r t a n c e o f d e v e l o p i n g e a c h s t u d e n t ' s u n d e r s t a n d i n g and
a p p r e c i a t i o n o f e c o n o m i c s a nd t h e e c o n o m i c s y s t e m f r o m t h e
kindergarten

through

tw elfth

grade.

.lh.e,-Li.fcfirature. .since the. Late. ..1 9 ft.Qs
There has been a n a t i o n a l t h r u s t in th e l a s t decade
o f so t o i n t e g r a t e

economic e d u c a t i o n i n t o

through tw e l f th grade cu rriculum .

the k in d erg arten

One m e a n s i s t h r o u g h

D e v e l o p m e n t a l E c o n o mi c E d u c a t i o n P r o g r a m s (DEEP).
others,

Among

t h e P o l i c i e s C o m m i s s i o n f o r B u s i n e s s a n d Ec o n o mi c

E d u c a t i o n (PCBEE) s u p p o r t s t h e i n c l u s i o n o f e c o n o m i c c o n ­
c e p t s in the b u s i n e s s e d u c a t i o n c u r r i c u l u m .

There a p p e a r s

to be an i n t e r e s t on t h e p a r t o f M ic h i g a n S t a t e D e p a r t m e n t
o f Education
lus,

staff,

e d u c a t o r s , r e p r e s e n t a t i v e s of th e popu-

and i n d u s t r y f o r

school programs.

i n t e g r a t i n g economic e d u c a t i o n i n t o

This i n t e r e s t extends to prep arin g

t e a c h e r s t h r o u g h p r e - s e r v i c e and i n - s e r v i c e t r a i n i n g t o

23
i n t e g r a t e econom ic c o n c e p t s a t t h e e l e m e n t a r y and s e c o n d a r y
levels,

in clu d in g business education.
Daughtrey (1970),

person's a b i l i t y

who s t r e s s e s t h e

importance o f a

t o make e f f e c t i v e e c o n o m i c d e c i s i o n s ,

states:
The a g g r e g a t e o f i n d i v i d u a l e c o n o m i c a c t i v i t y ,
w h e t h e r i t be a consumer d e c i s i o n , a w or ker d e c i ­
sio n , or a v o t e r d e c i s i o n , i s th e g u id in g f o r c e o f
o u r A m e r i c a n e n t e r p r i s e s y s t e m ( p. 9 7 ) .
As p a r t o f t h e

secondary program,

t h a t b u s i n e s s e d u c a t i o n "has a major r o l e
oping

economic

understanding."

she emphasized
to p lay in d e v e l ­

Daughtrey f u r t h e r

states:

A s s i s ti n g th e i n d i v i d u a l in d e v e lo p in g the
a b i l i t y t o make w i s e e c o n o m i c d e c i s i o n s i n b o t h t h e
p e r s o n a l and s o c i e t a l a r e a s i s t h e p u r p o s e o f
economic e d u c a t i o n .
T h i s i s t o o l a r g e an o r d e r to
be l i m i t e d to one l e v e l o f th e s c h o o l , or in d e e d ,
to the school alone.
E c o n o mi c e d u c a t i o n i d e a l l y i s
a c o n t i n u o u s p r o c e s s b e g i n n i n g i n t h e home i n t h e
e a r ly years of the c h ild ; included in the t o t a l
s c h o o l program from g r a d e one t h r o u g h h ig h s c h o o l ;
and p u r s u e d t h r o u g h c o l l e g e , v o c a t i o n s , or s e l f ­
d ire cted e f f o r t s throughout a person's l i f e .
Because b u s i n e s s e d u c a t i o n a d d r e s s e s i t s e l f to
p r o b l e m s t h a t a r e e c o n o m i c , i t i s c o m m i t t e d by
co n cep t to th e d e v e lo p m e n t o f economic u n d e r s t a n d ­
i n g by s t u d e n t s i n t h e s e c o n d a r y s c h o o l s ( p . 9 7 ) .
Daughtrey noted t h a t the f i r s t course in g e n e r a l
b u s in e s s i s u s u a l l y o f f e r e d to a l l
ten.

s tu d e n t s a t grade nine or

The e m p h a s i s i n t h e g e n e r a l b u s i n e s s c o u r s e i s o n :
P e r s o n a l eco no m ic a b i l i t i e s and u n d e r s t a n d ­
ings.
The i m p o r t a n t d i f f e r e n c e b e t w e e n f o r m e r
p r a c t i c e s i n g e n e r a l b u s i n e s s and t o d a y ' s t e a c h i n g
c e n t e r s a r o u n d t h e wo r d e m p h a s i s .
In the p ast
p e r s o n a l econom ic s k i l l s wer e s o u g h t a s end r e ­
sults.
T o d a y , w h i l e t h e s e s k i l l s a nd a b i l i t i e s
s t i l l form th e b u l k o f t h e c o n t e n t , t h e y a l s o
s e r v e a s l a u n c h i n g pads to an u n d e r s t a n d in g o f
b r o a d e r e c o n o m i c c o n c e p t s ( p. 9 9 ) .

24
As f o r e c o n o m i c s i n v o c a t i o n a l b u s i n e s s s u b j e c t s ,
Daughtrey w r i t e s :
One m i g h t i n t e r p r e t t h e t r a i n i n g f o r o n e ' s
v o c a t i o n a s t h e most i m p o r t a n t ty p e o f economic
education.
However, v o c a t i o n a l b u s i n e s s e d u c a t i o n
i s n o t i n c l u d e d i n t h e commonl y a c c e p t e d d e f i n i t i o n
o f economic e d u c a t i o n .
N e v e r t h e l e s s , t h e r e a r e o p p o r t u n i t i e s i n most
o f t h e s e s u b j e c t s t o i n t e g r a t e economic t o p i c s i n t o
t h e s u b j e c t m a t t e r , e s p e c i a l l y i n showing r e l a t i o n ­
s h i p s and r e i n f o r c i n g t h e l e a r n i n g from o t h e r
c o u r s e s (p. 101).
M illington
concepts are

(1969) s u g g e s t e d one r e a s o n economic

sometimes n ot i n t e g r a t e d

in b u sin ess education

cour s e s .
Business te a c h e rs often in d ic a te th a t lack of
s u f f i c i e n t p l a n n i n g t im e i s one o f t h e most p r e s s ­
i n g r e a s o n s why t h e y h a v e n o t ma d e a d e t e r m i n e d
e f f o r t to i n t e g r a t e economic c o n c e p t s i n t o t h e i r
r e s p e c t i v e c o u r s e s ( p. 7 6 ) .
He s t r e s s e d

the im portant r o l e of business teachers:

No e d u c a t o r s h o u l d b e g u i l t y o f i s o l a t i n g h i m ­
s e l f and h i s i n s t r u c t i o n f r o m t h e r e a l w o r l d , and
t h i s admonition a p p l i e s e s p e c i a l l y to b u sin e ss
t e a c h e r s in view o f t h e i r s p e c i a l r o l e in p r e p a r ­
i n g s t u d e n t s f o r employment (p. 77).
M illington also believed th at,

w i t h s u p p o r t from t h e J o i n t

C o u n c i l on E c o n o m i c E d u c a t i o n (JCEE) a n d i t s c e n t e r s ,

it

time to emphasize economics in th e high s ch o o l:
The e c o n o m i c e d u c a t i o n mo v e me n t c o n t i n u e s t o
i n c r e a s e i n d e p t h a n d t empo t h r o u g h a s e r i e s o f
n a t i o n a l p r o j e c t s , and b u s i n e s s t e a c h e r e d u c a t o r s
h a v e n e v e r b e e n i n a more f a v o r a b l e p o s i t i o n t o
i m p l e m e n t t h e i r p o l i c y s t a t e m e n t s on t h e r o l e o f
economics in the high school b u s i n e s s c u r r i c u l u m
(p. 78).
Duff (1971),

when d i s c u s s i n g e c o n o m i c c o n c e p t s i n

the b u s in e s s c u rric u lu m ,

states:

is

25
Because th e major o b j e c t i v e s o f th e b u s i n e s s
c u r r i c u l u m do n o t a l w a y s i n c l u d e t h e e x a m i n a t i o n
o f s o c ia l problems, the o p p o r tu n itie s for incorpo­
r a t i n g Rothenberg's b a s ic le s s o n s ( r e l a t i n g the
s t u d y o f e c o n o m i c s t o t h e p r o b l e m s o f modern
so c ie ty ) are not a s a p p a re n t as they are in the
so cia l stu d ies curriculum .
N e v e rth e le ss , the
g o a l s o f d e v e l o p i n g p e r s o n a l economic competency
and an u n d e r s t a n d i n g o f b u s i n e s s a r e n o t i n c o n s i s ­
te n t with the o b j e c t i v e s of teaching stu d en ts
a b o u t our economy a s a w h o le and a b o u t t h e u n d e r ­
l y i n g economic p r i n c i p l e s and c o n c e p t s .
R o t h e n b e r g ' s b a s i c l e s s o n s can be used t o a n a ­
l y z e d e c i s i o n s on e n t e r i n g t h e c l e r i c a l , s e c r e t a r ­
i a l or d i s t r i b u t i v e a re a s of business.
The s t u d e n t
who e n t e r s t h e b u s i n e s s c u r r i c u l u m t o p r e p a r e f o r
e m p l o y m e n t h a s a l r e a d y made a v e r y i m p o r t a n t e c o ­
no mi c d e c i s i o n .
He s h o u l d b e a w a r e o f t h e c o s t s
and o p p o r t u n i t i e s , t h e t r a d e - o f f s and t h e p o s s i b l e
p a y o f f s r e l a t e d t o h i s d e c i s i o n (pp. 8 - 9 ) .
For d e c a d e s b u s i n e s s e d u c a t i o n l e a d e r s h a v e c o n s i s ­
tently

s tr e s s e d the v a l u e o f te a c h in g economics w h ile t r a i n ­

ing o f f i c e w orkers o f the f u tu r e .
sized

T h e s e l e a d e r s h a v e e mp h a ­

t h a t mor e c o u r s e s n e e d t o be o f f e r e d

typew riting,
riculum .

than

shorthand,

and b o o k k e e p i n g i n t h e b u s i n e s s e d u c a t i o n c u r ­

Integrating

and r e i n f o r c i n g econo mic c o n c e p t s

h e l p s s t u d e n t s p r e p a r e f o r u n d e r s t a n d i n g economic p r o b le m s
and a p p r e c i a t i n g

their

b u s i n e s s economic system.

Office

w o r k e r s need an a d e q u a t e b a c k g r o u n d b e f o r e l e a v i n g t h e
s e c o n d a r y s c h o o l and e n t e r i n g

t h e work f o r c e p e r m a n e n t l y .

As m e n t i o n e d p r e v i o u s l y ,

D a u g h tr e y (1970) b e l i e v e s

t h a t economic u n d e r s t a n d i n g s a r e v i t a l
for the o f fic e occupations.
t o p i c s can be i n t e g r a t e d
course.

Today,

Daughtrey

(1982)

eco n o m ic c o n c e p t s " (p. 11).

s tu d e n ts studying

She a l s o b e l i e v e s t h a t e c o n o m i c

and r e i n f o r c e d

economic c o n d i t i o n s i n d i c a t e

for

states:

from c o u r s e to
"The p r e v a i l i n g

t h e n e e d f o r mor e e m p h a s i s on

26

The Nefi.fl.£oE..Ec,Q.nQjai£-Ed.u.cattani
Selected...Readings
General Education
Educators in g en eral are c a l l i n g for a b e tte r eco­
n o mi c b a c k g r o u n d f o r
by A b r e l l

(1981),

citizens.

among o t h e r s ,

A problem which i s a d d r e s s e d
i s t h a t " b u s i n e s s and e d u c a ­

t i o n a r e i n c r e a s i n g l y r e c e i v i n g mo r e a n d mor e b l a m e f o r t h e
c o u n t r y ’s i l l s "

(p.

320).

He n o t e s

that

in a n a tio n a l

o p i n i o n p o l l b o t h h i g h s c h o o l and c o l l e g e

students expressed

r e g r e t t h a t t h e y h a d n o t r e c e i v e d "a b e t t e r

background about

their

to

economic

s y st em " (p.

321).

He r e f e r s

i l l i t e r a c y o f o u r s o c i e t y and c i t e s

the

economic

s e v e r a l examples.

One

i n d i c a t i o n i s t h e f o l l o w i n g o p i n i o n h e l d by many A m e r i c a n s .
The m i s c o n c e p t i o n t h a t b u s i n e s s i s o u t f o r p r o f i t
o n l y a nd i s w o r k i n g o v e r t i m e t o "do t h e c o n s u m e r i n " i s
d e e p l y i n g r a i n e d in th e American psyche.
This near
f ix a ti o n with "business-as-bam boozler" i s , in p a r t , the
r e s u l t o f an e d u c a t i o n a l s y s t e m which f a i l s t o s t r e s s
e c o n o m i c l i t e r a c y among i t s y o u n g .
However w e l l i n t e n t i o n e d t h e y may b e , o u r s c h o o l s m u s t s h a r e t h e
b l a m e f o r much o f t h e a n t i - b u s i n e s s s e n t i m e n t w h i c h now
p r e v a i l s in our country.
O n l y a s m a l l n umber o f t h e
n a tio n 's high school stu d e n ts graduate w ith anything
re se m b lin g a f u l l co u rse in economics and, accordin g to
Marvin Feldman, P r e s i d e n t o f the F ashion I n s t i t u t e of
T e c h n o l o g y h i s own r e s e a r c h s u r v e y s i n d i c a t e t h a t o n l y
f o u r t e e n p e r c e n t o f American youth f e e l t h a t th ey a r e a
p a r t o f t h e f r e e e n t e r p r i s e s y s t e m ( p. 321)1
A b rellb eliev es that
f r e e e n t e r p r i s e e d u c a t i o n s h o u l d be t a u g h t a t a l l l e v e l s
i n a l l o f t h e s c h o o l s o f o u r n a t i o n . Th e p r o g r a m s h o u l d
b e g i n e a r l y , be s e q u e n t i a l , and r e m a i n c o n t i n u o u s .
A
s i n g l e , o n e - s h o t c o u r s e a t any one p a r t i c u l a r l e v e l w i l l
n o t s u f f i c e t o b r i n g a b o u t economic l i t e r a c y on t h e p a r t
o f the masses.
The i d e a l p r o g r a m w o u l d be m u l t i ­
d i s c i p l i n a r y and i n t e g r a t e d t h r o u g h o u t t h e c u r r i c u l u m ,
le a d in g to a r a t h e r i n t e n s i v e course in the senior year
o f high school.
B u s in e s s , l i t e r a t u r e , math, s o c i a l
s t u d i e s , and n e a r l y a l l s u b j e c t s l e n d t h e m s e l v e s

27
b e a u t i f u l l y to th e i n t e g r a t i o n o f f r e e e n t e r p r i s e w ith
t h e i r s p e c i a l domain o f k n o w l e d g e (p. 322).

This g e n e ra l
keenly f e l t
early

c o n cern f o r economic l i t e r a c y has been

by many b u s i n e s s e d u c a t o r s .

Sheppard in the

1 9 0 0 s a n d S wa n s o n a n d G i l l i a m i n t h e 1 9 6 0 s s t r e s s e d

t h e need f o r e c o n o m i c s i n t h e b u s i n e s s e d u c a t i o n c u r r i c u l u m .
To d a y ,

Brown ( 1 9 8 1 ) e m p h a s i z e s t h e same v i e w :

I f we w e r e t o a n a l y z e c a r e f u l l y w h a t h a p p e n s t o u s
i n o u r d a i l y l i v e s , we m i g h t f i n d t h a t e c o n o m i c h a p p e n ­
i n g s — t h e o c c u r r e n c e s o f c o n t a c t w i t h our economic
w o rld — comprise a la r g e share o f our ex p erien ces.
Yet
o u r b u s i n e s s c u r r i c u l u m i n many w a y s d o e s n o t r e f l e c t
t h a t s h a r e (p. 161).
Brown b e l i e v e s e c o n o m i c u n d e r s t a n d i n g i s e s s e n t i a l :
The b a s i c b u s i n e s s / e c o n o m i c e d u c a t i o n a r e a i s o n e
w ith which a l l b u s i n e s s e d u c a t o r s s h o u ld i d e n t i f y .
The
courses provide a foundation for the education for b u s i­
n ess t h a t c o m p r is e s the o t h e r b a s i c component o f th e
business curriculum .
Basic b u s in e s s co u rses are educa­
t i o n a b o u t b u s i n e s s , an i d e n t i f i c a t i o n o f t h e r o l e o f
i n d i v i d u a l s a s c o n s u m e r s , p r o d u c e r s , e n t r e p r e n e u r s , and
c i t i z e n s i n an economic w o r l d .
The f i r s t s t e p t o w a r d
f u n c t i o n i n g i n t h a t w o r l d mo r e e f f e c t i v e l y i s a n u n d e r ­
s t a n d i n g o f how t h e e c o n o m i c s y s t e m o p e r a t e s .
Basic
business courses provide avenues for th a t understanding
(p. 161).
Garman ( 1 9 8 1 ) c r i t i c i z e s

educators for

mor e p r o g r e s s i n i n t e g r a t i n g e c o n o m i c s i n t o

n o t making

th e ir courses:

Keep on " t y p i n g a nd t r a n s c r i b i n g , " b u s i n e s s e d u c a ­
t o r s , a n d you w i l l m a i n t a i n t h a t o l d i m a g e . As i n a c c u ­
r a t e a s t h e i m a g e may b e i t s e e m s t h a t t h e p r o f e s s i o n o f
b u s i n e s s e d u c a t i o n i n s i s t s upon a s e l f - f u l f i l l i n g p r o p h ­
ecy o f t e a c h i n g j u s t t y p e w r i t i n g and s h o r t h a n d .
That i s
t h e image you h a v e had i n t h e p a s t , you s t i l l h a v e , and
probably w i l l have in the fu tu re.
You h a d a c h a n c e t o c h a n g e y o u r i ma g e i n t h e 1 9 5 0 s
by p i c k i n g u p on e c o n o m i c e d u c a t i o n and i n c o r p o r a t i n g i t
in to the b u s in e s s education c u r r i c u l a .
Some d i d .
Fo r
t h e p r o f e s s i o n a s a w h o l e , b u s i n e s s e d u c a t i o n h a s made
p r o g r e s s in t h i s a r e a even though i t i s l i m i t e d .
The

28

e f f o r t s o f t h e J o i n t C o u n c i l on E c o n o mi c E d u c a t i o n ,
many u n i v e r s i t i e s a n d c o l l e g e s a s w e l l a s many e d u ­
c a t o r s a c r o s s the cou ntry are h e lp in g to implement
economic e d u c a t i o n i n e l e m e n t a r y and s e c o n d a r y
s c h o o ls , which, o f c o u rse , p r o j e c t s a b roader p e rc e p ­
t i o n o f what th e b u s i n e s s e d u c a to r r e a l l y does.
However t h e " c o n s u m e r e d u c a t i o n s h i p " came
t h r o u g h i n t h e 1 9 6 0 s a n d i t s e e m s w i t h f ew e x c e p t i o n s
th a t the p ro fe ssio n o f b u sin e ss education not o n ly
m i s s e d t h e b o a t b u t o v e r s l e p t w h i l e t h e s h i p wa s
slow ly le a v in g port.
By a n o v e r w h e l m i n g m a j o r i t y
consumer e d u c a t i o n c o u r s e s i n t h e p u b l i c s c h o o l s a r e
t a u g h t by home e c o - n o m i c s t e a c h e r s , n o t b u s i n e s s
e d u c a t o r s (p. 170).
Dlabay (1982) i s a l s o c r i t i c a l :
B u s i n e s s e d u c a t o r s f r e q u e n t l y view t h e i r t a s k a s
o n e l i m i t e d t o t y p i n g , s h o r t h a n d , r e t a i l i n g , and
accounting competencies.
While th e se a b i l i t i e s a re
e s s e n t i a l f o r b u s i n e s s and c a r e e r s u c c e s s , e v e r y
i n d i v i d u a l must a l s o u n d e r s ta n d the economic s e t t i n g
i n w h i c h e m p l o y m e n t o c c u r s ( p . 37) .
He e m p h a s i z e s i n - s e r v i c e

training:

I n - s e r v i c e t i m e m u s t be s c h e d u l e d t o c o o r d i n a t e
p o te n tia l overlapping content in various basic b u si­
n e s s s u b j e c t s ; t o i n t e g r a t e e co n om i c, co n s um e r, and
c a r e e r c o n c e p t s i n t o e x i s t i n g b u s i n e s s c o u r s e s ; and
to u p d a t e t h e c o n t e n t and m ethods e s s e n t i a l f o r a
s u c c e s s f u l program . . . .
Basic b u sin ess education
r e q u i r e s w e ll- p r e p a r e d te a c h e r s i f secondary school
s t u d e n t s a r e to r e c e i v e a d e q u a te economic, consumer,
and c a r e e r t r a i n i n g (p. 38).
Dlabay adds:
with vo catio n al

training,

business curriculum"
vital

"Basic b u s in e s s ed u catio n ,

( p.

combined

i s n ecessary for a comprehensive
38).

He p e r c e i v e s

there e x is ts a

need t o i n t e g r a t e b a s i c b u s i n e s s c o n c e p t s i n t o

shorthand,

or a c c o u n t i n g (p.

typing,

38) a n d b e l i e v e s t h e " e f f o r t s

o f everyone i n v o l v e d in b u s i n e s s e d u c a t i o n a r e r e q u i r e d to
c r e a t e and im p le m e n t pro g ra m s which b e s t s e r v e t h e n e e d s o f
stu d en ts with regard
cation"

(p.

38).

to economic,

consumer,

a nd c a r e e r

edu­

29
In the a r t i c l e

by Garman ( 1 9 8 1 ) c i t e d e a r l i e r ,

s t a t e s a b o u t consumer e d u c a t i o n (which t y p i c a l l y
economic

he

includes

concepts):

Home e c o n o m i c s i s n o t j u s t " c o o k i n g a n d s e w i n g , "
j u s t l i k e b u s i n e s s e d u c a t i o n i s n o t j u s t " t y p i n g and
shorthand."
B o t h p r o f e s s i o n s d e s e r v e t h e n e e d t o be
v e r y h e a v i l y i n v o l v e d i n t h e t e a c h i n g o f consumer e d u c a ­
t i o n b e c a u s e t h e p u r p o s e s and g o a l s o f b o t h f i e l d s o f
s tu d y em phasize t h e im p o r t a n c e o f t e a c h i n g young p e o p l e
t o b ecome mor e i n f o r m e d a b o u t t h e i r r o l e s a n d r e s p o n s i ­
b i l i t i e s a s c o n s u m e r s ( p . 1 71 ) .
Garman s t r o n g l y

fa v o rs adequate teacher tra in in g :

R e g a r d i n g p r e - s e r v i c e e d u c a t i o n , t h e r e i s no
s u b s t i t u t e for p u ttin g in to the s t a t e c e r t i f i c a t i o n
requirem ents for business education te a c h e rs the
p r o v i s i o n t h a t t h e y must h a v e a s p e c i f i c c o l l e g e l e v e l c o u r s e or c o u r s e s i n consumer e d u c a t i o n .
For
t h e many t e a c h e r s who h a v e h a d no s p e c i a l t r a i n i n g
i n consumer e d u c a t i o n , y e t a r e p r e s e n t l y i n t h e
c l a s s r o o m , much n e e d e d i n - s e r v i c e e d u c a t i o n h a s t o
occur.
W i t h o u t an i n f o r m e d and e n t h u s i a s t i c
b u s i n e s s e d u c a t i o n t e a c h e r how c a n we e x p e c t a
l o c a l school d i s t r i c t to p e rm it t h a t te a c h e r to
l e a d a consumer e d u c a t i o n e f f o r t ( p . 171)?
Br owe r ( 1 9 8 2 ) ,
business educators,

i n r e s p o n s e t o q u e s t i o n s he a s k e d

fin d s th a t business teacher education is

o v e r w h e lm in g ly th e major co ncern .

" E s p e c i a l l y noted i s the

lack of p re p a ra tio n of ed u c a to rs to teach the n o n - s k i l l
subjects"

( p.

215).

Br o we r

notes the respondents a ls o

m e n t e d a b o u t t h e " n a r r o w n e s s o f many h i g h
curriculums"

( p.

Stocker

com­

school

217).
(1981)

stresses

the

need f o r change because

o f new t e c h n o l o g y a n d c o m p u t e r s :
B u s i n e s s e d u c a t i o n c a n no l o n g e r a f f o r d t o be
o n l y a t y p e w r i t i n g , s h o r t h a n d , and b o o k k e e p i n g / a c ­
c ounting program,
p a r t i c u l a r l y since th ese sub­
j e c t s a s we p r e s e n t l y t e a c h t h e m may n o t e x i s t i n
the not too d i s t a n t f u t u r e .
Business educators

30
m u s t pay a t t e n t i o n t o t h e s i g n s w h i c h a r e a l r e a d y
here.
B u s i n e s s e d u c a t i o n h a s l o n g had t h e o b j e c t i v e
o f p r e p a r i n g p e o p l e t o work i n t h e o f f i c e .
That
o b j e c t i v e s h o u l d n o t c h a n g e . What n e e d s t o c h a n g e
i s how t h a t o b j e c t i v e i s a c c o m p l i s h e d ( p . 2 6 ) .
D o rty (1981) a l s o

p o i n t s o u t t h e need t o keep pace

w ith change:
Word p r o c e s s i n g m a n a g e r s , w h i l e s t i l l a s s o c i a t e d t o o
o f t e n w i t h t h e s e c r e t a r i a l b a c k g r o u n d s o u t o f w h i c h many
h a v e come, a r e m a n a g e r s i n t h e t r u e s e n s e o f t h e wo r d .
B u s i n e s s t e a c h e r s w i l l be r e m i s s i n t h e i r r e s p o n s i ­
b i l i t i e s i f t h e y do n o t b e g i n t o a d d r e s s t h e s p e c i f i c
n eed s o f t h e s e p e o p le (p. 7).
In a d d i t i o n

to what has been w r i t t e n ab o u t b u s i n e s s

e d u c a t i o n t e a c h e r s and t e a c h i n g i t s e l f ,
h a v e f o c u s e d on t h e
literacy.

numerous a u t h o r s

s t u d e n t and t h e p r o b l e m o f economic

Some o f t h i s

literature

i s d i s c u s s e d below.

B r i c k e l a n d S c o t t ( 1 9 7 6 ) comment on t h e

long-range

v a lu e of h e lp in g high school s tu d e n ts in c re a se t h e i r knowl­
edge o f economics:
General education re se a rc h in d i c a t e s t h a t a t t i t u d e s
tend to change a s knowledge i n c r e a s e s .
For ex a m p l e ,
a t t i t u d e s to w ard s a f i e l d o f study u s u a l l y change as
s t u d e n t s l e a r n mor e a b o u t i t .
Or, t o t a k e a n o t h e r
e x a m p l e , s t u d e n t s d e v e l o p mor e s o p h i s t i c a t e d i n s i g h t s
in to problems a s t h e i r knowledge i n c r e a s e s w ith the
r e s u l t th a t th e ir opinions about s o lu tio n s s h ift.
Thus,
h i g h s c h o o l s t u d e n t s who l e a r n e c o n o m i c s w i l l t e n d t o
d e v e l o p v i e w s a b o u t e c o n o m i c p o l i c i e s e v e n i f no p o l i ­
c i e s a r e a d v o c a t e d i n t h e i r c o u r s e (pp. 17-18 ).
W a ls ta d and Soper (1982) d i s c u s s a "model o f e c o ­
nomic l e a r n i n g i n t h e h i g h s c h o o l s w h ic h i n c o r p o r a t e d

stu­

d e n t o u t p u t s i n b o t h t h e c o g n i t i v e and a f f e c t i v e domai ns"
(p.

52).

The d a t a " w e r e c o l l e c t e d

by t h e

Purdue U n i v e r s i t y

M e a s u r e m e n t a n d R e s e a r c h C e n t e r f o r t h e JCEE a s p a r t o f a
c o m p r e h e n s i v e e v a l u a t i o n o f JCEE p r o g r a m s , " w h i c h i n c l u d e d

31
" t h e c o g n i t i v e TEL i n s t r u m e n t t o e v a l u a t e
DEEP."

Among o t h e r

the impact of

f i n d i n g s W a l s t a d and Soper r e p o r t t h e

follow ing:
Whether a s t u d e n t h a s been exp o sed t o e c o n o m ic s
i n s t r u c t i o n (ECON) i n p r i o r g r a d e s a l s o h a s i m p o r t a n t
e f f e c t s on s t u d e n t c o g n i t i v e and a f f e c t i v e e v a l u a t i o n s .
As e x p e c t e d , s t u d e n t s w i t h ECON show mo r e k n o w l e d g e by
3 . 5 4 p o i n t s o n t h e TEL . . . t h a n n o n- ECON s t u d e n t s , a l l
o t h e r t h i n g s b e i n g e q u a l (p. 51).
Byrnside,

Executive D ire c to r of the N atio n al Busi­

ness Education A sso c ia tio n ,

and Lee,

P resid en t o f the

B u s i n e s s and O f f i c e E d u c a t io n D i v i s i o n ,
A ssociation,

(1980)

American V o c a t i o n a l

state:

The f i e l d o f b u s i n e s s e d u c a t i o n d e a l s w i t h i n s t r u c ­
t i o n and p r o g r a m s f o r y o u t h and a d u l t s i n t h e a r e a s o f
o f f i c e e d u c a t i o n , economic e d u c a t i o n , and p e r s o n a l - u s e
business s k i l l s .
An e s t i m a t e d 1 0 0 , 0 0 0 p e r s o n s a r e em­
ployed in the b u s in e s s education f i e l d se rv in g m i l l i o n s
of students annually.
The s k i l l s , k n o w l e d g e s , a n d com­
p e te n c ie s t h a t s tu d e n ts gain in b u s in e s s e d u catio n
c l a s s e s s e r v e t h e m i n t h e i r own p e r s o n a l e c o n o m i c
d e a l i n g s , a s a b ase f o r employment in A m erica's b u s i ­
n e s s e s a n d i n d u s t r y , a nd a s a f o u n d a t i o n f o r a d v a n c e d
education.
The b u s i n e s s e d u c a t i o n f i e l d , b e s i d e s t e a c h i n g
i d e n t i f i a b l e v o c a t i o n a l s k i l l s such a s t y p i n g , s t e n o ­
g r a p h y , a c c o u n t i n g , wor d p r o c e s s i n g , c a s h i e r i n g , d a t a
e n t r y , f i l i n g , r e c e p t i o n d u t i e s , and s i m i l a r s k i l l s ,
makes a m a j o r c o n t r i b u t i o n t o w a r d t h e d e v e l o p m e n t o f
competency in th e b a s i c s k i l l s :
r e a d i n g , w r i t i n g , and
computation.
F u rth er, dozens of c r i t i c a l l y im portant
p a r a l l e l to p ic s are fused in to these i n s t r u c t i o n a l pro­
grams:
human r e l a t i o n s , g r o o m i n g , t h e wo r k e t h i c , f r e e
e n t e r p r i s e , e c o n o m i c p r i n c i p l e s , a n d s o f o r t h ( p . 1).
Calhoun (1981)

s t a t e s th a t bu sin ess education has a

tw ofold emphasis a t the secondary school l e v e l :
(1)
academic s u b je c t m atter inten ded to d e v e lo p
b r o a d b u s i n e s s - e c o n o m i c u n d e r s t a n d i n g s n e e d e d by a l l
re s p o n s ib le c i t i z e n s along with competencies for e f f e c ­
t i v e m a n a g e m e n t o f o n e ' s p e r s o n a l b u s i n e s s a f f a i r s and
(2) v o c a t i o n a l k n o w l e d g e s and s k i l l s d e s i g n e d t o p r e p a r e
one f o r i n i t i a l employment i n a b u s i n e s s c a r e e r (pp. 2 8 29).

32
Bronner

(1981)

states:

We h a v e b e c o m e , f o r t h e m o s t p a r t , a n a t i o n o f f l a b b y
b u s i n e s s and econo mic i l l i t e r a t e s — " e c o n o l i t e r a t e s , " i f
y ou w i l l .
And, b e c a u s e o f t h i s f u n c t i o n a l i l l i t e r a c y ,
our s t u d e n t s g r a d u a t e w i t h l i t t l e b u s i n e s s and economic
m u s c l e t o n e ( p . 14).
Bronner b e l i e v e s b u s i n e s s e d u c a t i o n must s h a re th e blame:
Our d i s c i p l i n e — b u s i n e s s e d u c a t i o n — h a s two p r i m a r y
objectives:
t e a c h i n g f o r b u s i n e s s and t e a c h i n g a b o u t
business.
A f t e r mo r e t h a n 150 y e a r s o f p r e p a r i n g s t u ­
d e n t s to e n t e r t h e b u s i n e s s w o r l d — and d o i n g a f a i r l y
a d e q u a te job o f t h a t — th e second o b j e c t i v e h a s f a l l e n
i n t o o b s c u r i t y and n e g l e c t .
Our g r a d u a t e s l e a v e o u r
s e c o n d a r y s c h o o l s k n o w i n g so l i t t l e o f o u r b u s i n e s s a n d
e c o n o m i c s y s t e m a s t o be v i r t u a l l y d e f e n s e l e s s i n d e a l ­
i n g w i t h t h e r e a l i t i e s o f l i v i n g i n and c o p i n g w i t h t h e
b u s i n e s s w o r l d ( p . 14).
He p o i n t s t o o n e c a u s e :
Y e t t h e r e may b e v a l i d r e a s o n s f o r t h e d e m i s e o f
b a s i c b u s i n e s s and economic u n d e r s t a n d i n g s .
Increasing
academic r e q u i r e m e n t s a l l o w s t u d e n t s fewer program e l e c ­
t i v e s , t h u s e n c o u r a g i n g t he m t o t a k e o n l y s i n g l e - p e r i o d ,
non-sequenced , j o b - e n t r y t r a i n i n g c o u r s e s such a s s h o r t ­
hand and t y p e w r i t i n g ( k e y b o a r d i n g ) , i f t h e y t a k e any
b u s i n e s s c o u r s e s a t a l l ( p. 14).
Bronner recommends s t r u c t u r a l

changes:

I f no c o u r s e i n b a s i c b u s i n e s s - e c o n o m i c s e x i s t s
w i t h i n your program, c o n s i d e r t h e d e v e l o p m e n t and i m p l e ­
m entation o f modules o f " s u r v i v a l s k i l l s " in b u s in e s s /
economics— a f o u r - to six-week s e r i e s o f s e l f - c o n t a i n e d
t o p i c s t h a t d i r e c t l y a f f e c t a n d i n v o l v e s t u d e n t s ( p . 14).
Ha n s e n ( 1 9 7 7 )

states:

"Taking a r a t i o n a l , u n e m o tio n a l approach to t h e s e
i s s u e s , h a v in g a v a i l a b l e a framework f o r u n d e r s t a n d i n g
t h e economic s y s t e m , knowing t h e b a s i c economiq c o n ­
c e p t s , and b e i n g a b l e t o u t i l i z e t h e s e s e v e r a l e l e m e n t s
o f economic u n d e r s t a n d i n g i n a d d r e s s i n g a v a r i e t y o f
s p e c i f i c q u e s t i o n s (p. 2).
D*0nofrio

(1981)

s t a t e s a s y s t e m a t i c knowledge o f

how t h e economy f u n c t i o n s i s n e e d e d :

33
Leaders in b u sin e ss education a t t e s t t h a t the g o a ls
o f b u s i n e s s e d u c a t i o n a r e t o t e a c h c i t i z e n s t o be e c o ­
n o m i c a l l y l i t e r a t e and i n f o r m e d , t o p r o d u c e i n t e l l i g e n t
c o n s u m e r s , and t o p r o d u c e s k i l l e d w o r k e r s f o r t h e b u s i ­
ness world.
Thus, n o t o n l y does b u s i n e s s e d u c a ti o n
e s p o u se a s one o f i t s g o a l s th e need to p r e p a r e i n d i v i ­
d u a l s t o be e c o n o m i c a l l y l i t e r a t e and i n f o r m e d , b u t one
can say t h a t th e u n d e r p in n in g o f a l l t h r e e g o a l s o f
b u s i n e s s e d u c a t i o n i s e c o n o m i c e d u c a t i o n , ( p . 15).
She a r g u e s f o r b e t t e r

in stru ctio n al m aterials:

E c o n o m i s t s , econom ic e d u c a t o r s , and t e a c h e r s c o n c u r
on t h e i m p o r t a n c e o f i n d i v i d u a l s a c q u i r i n g a k n ow led ge
o f b a s i c eco nom ic c o n c e p t s and b e i n g a b l e t o a p p l y t h e i r
knowledge o f economic i s s u e s r a t h e r th an b ein g g iv e n a
d ie t of fa c tu a l information.
Teaching m a t e r i a l s de­
signed to encourage i n d i v i d u a l s to a p p l y what i s being
l e a r n e d w i l l i l l u s t r a t e th e d i f f e r e n t economic concepts,
p r o v i d e o p p o r t u n i t i e s f o r a n a l y s i s , and r e q u i r e e v a l u a ­
t i o n (pp. 15, 17).
D'Onofrio again s t a t e s :
S i n c e b u s i n e s s e d u c a t i o n p r o g r a m s enc om pa ss a wide
v a r i e t y o f c o u r s e s , i t becomes i m p e r a t i v e t o i n t e g r a t e
economic c o n c e p t s w i t h i n e x i s t i n g c o u r s e s and t h u s
th ro u g h o u t th e b u s i n e s s e d u c a t i o n program.
I n so d o i n g ,
b u s i n e s s e d u c a t o r s w i l l be m e e t i n g t h e g o a l o f p r e p a r ­
i n g a l l i n d i v i d u a l s t h e y wo r k w i t h t o b e e c o n o m i c a l l y
l i t e r a t e (p. 15).
Zancanella

and Church (1981) c a l l

s t e p s when o f f e r i n g
programs to o f f e r
ness,

courses.

for e ig h t p o s itiv e

Two o f t h e s e a r e " r e v i s i n g

b u s i n e s s c o u r s e s " a nd " i n t e g r a t i n g b u s i ­

e co no m i c, and e n t r e p r e n e u r s h i p p r i n c i p l e s i n t o a l l

existing

classes."

(pp.

3-6).

Zancanella

with the

v i e w e x p r e s s e d by many o t h e r s :

a r e more t h a n m a c h i n e s t e a c h e r s ,
teachers"

(p.

6).

and Church a g r e e
"Surely,

though,

t y p i n g and s h o r t h a n d

we

34

Empirlaal_Rsaear.fi,fa-Ab&ufc
S t u d e n t s , and T e a c h e r s
Numer o us r e s e a r c h p r o j e c t s h a v e a t t e m p t e d t o q u a n ­
tify

t h e a b i l i t i e s and a t t i t u d e s o f b o t h t e a c h e r s and

s t u d e n t s in term s o f economic e d u c a t io n .

S ev eral of these

a re d is c u s s e d below.
The T e s t o f Ec o n o mi c L i t e r a c y wa s u s e d o n h i g h
school

s e n i o r s by Haynes (1981) a s one o f t h r e e

to gather

instrum ents

d a t a t o a n a l y z e t h e k n o w l e d g e a nd a t t i t u d i n a l

consequences of a one-sem ester course in high school eco­
nomics.

The i n s t r u m e n t s w e r e a d m i n i s t e r e d t o r a n d o m l y s e ­

le c te d sen io rs in H u n ts v ille ,

Alabama.

The r e s u l t s s u p p o r t

t h e n o t i o n t h a t an e c o n o m i c s b ac k g r o u n d makes a d i f f e r e n c e :
I n g e n e r a l , s t u d e n t s who h a d c o m p l e t e d a o n e semester course in high school economics scored s i g n i f i ­
c a n t l y h i g h e r o n t h e TEL t h a n d i d s t u d e n t s who h a d n o t
taken economics.
The TEL m e a s u r e s s t u d e n t s u n d e r s t a n d ­
i n g o f b a s i c econom ic c o n c e p t s (p. 2767-A).
Haynes's d a ta a l s o r e v e a l

inform ation about students

who s c o r e w e l l :
S t u d e n t s who s c o r e d h i g h on t h e e c o n o m i c a c h i e v e m e n t
t e s t h a d mor e c o n s e r v a t i v e o p i n i o n s t o w a r d e c o n o m i c
i s s u e s t h a n t h o s e s t u d e n t s who r e c e i v e d l o w s c o r e s on
t h e TEL. Sex wa s t h e o n l y p e r s o n a l c h a r a c t e r i s t i c t h a t
a p p e a r e d t o a f f e c t economic a t t i t u d e s .
In both groups,
m a l e s t u d e n t s h a d s i g n i f i c a n t l y h i g h e r s c o r e s on t h e SOQ
( S o c ia l Opinion Q u e s tio n n a ir e ) , d e m o n stra tin g t h a t , in
g e n e r a l , m a l e s t u d e n t s h a d mo r e c o n s e r v a t i v e o p i n i o n s
t o w a r d e c o n o m i c i s s u e s a s m e a s u r e d b y t h e SOQ t h a n d i d
f e m a l e s t u d e n t s ( p. 2 7 6 7 - A ) .
Speers

(1982)

examined t e a c h e r s ' a t t i t u d e s

toward

i n - s e r v i c e p r o g r a m s b a s e d on l e v e l o f i n v o l v e m e n t i n p l a n ­
n in g a consumer economic e d u c a t i o n i n - s e r v i c e program.
w o rk sh o p s were o r g a n i z e d w i t h f i f t y - f i v e

Two

p a r t i c i p a n t s each.

35
The p r o j e c t wa s c o o r d i n a t e d by t h e

M i c h i g a n Cons umer E d u c a ­

t i o n Center a t E a s te r n Michigan U n i v e r s i t y .
No s i g n i f i c a n t d i f f e r e n c e s w e r e f o u n d i n a t t i t u d e s
between th e c o n t r o l

and e x p e r i m e n t a l g r o u p s to w ar d t e a c h e r

involvem ent in i n - s e r v i c e planning.
as a clear

p r e d i c t o r o f p o s i t i v e a t t i t u d e s toward th e con­

cepts tested.
to

The s t u d y d i d n o t s e r v e

previous

Speers sta te d

t h a t t h e f i n d i n g was c o n t r a r y

r e s e a r c h (p. 3974-A).

A s t u d y by P e t e r s

(1980) measured t h e economic un­

d e r s t a n d i n g o f 261 u n d e r g r a d u a t e

s e n io r s in secondary educa­

tio n teacher p re p a ra tio n in s e le c te d F lo rid a u n i v e r s i t i e s
during the f a l l
collected
Form A.

quarter

of

1978 ( p.

641-A).

Data were

t h r o u g h S t a n l e y ' s T e s t o f Cons ume r C o m p e t e n c i e s ,
The s t u d y

suggests

that

d i f f e r e n c e s i n sex and em ploym ent h i s t o r y a r e n o t
r e l a t e d t o s c o r e s on a t e s t o f consumer k n o w l e d g e ,
b u t d i f f e r e n c e s i n g r a d e p o i n t a v e r a g e , a g e , a nd
e n r o l l m e n t i n m a r k e t i n g a nd e c o n o m i c s c o u r s e s and
p r o g r a m p a r t i c i p a t i o n a r e r e l a t e d t o s c o r e s on t h e
t e s t (p. 641-A ).
Ho u g h t o n ( 1 9 8 0 )

studied

p e r c e p t i o n s o f the funded

v o c a t i o n a l c l e r k - s t e n o g r a p h y programs in the Southwestern
Ohi o p u b l i c

secondary sch oo ls.

Data were o b t a i n e d from

s e n i o r - l e v e l v o c a t i o n a l c l e r k - s t e n o g r a p h y t e a c h e r s , employed
1978 g r a d u a t e s ,

employers of the graduates,

business o ffic e

education supervisors.

and v o c a t i o n a l

One o f H o u g h t o n ' s

s u p p o r t e d h y p o t h e s e s wa s :
T e a c h e r s , g r a d u a t e s , e m p l o y e r s and s u p e r v i s o r s
w i l l p e r c e iv e the adequacy of s tu d e n t p r e p a ra tio n
in the area of b u s in e s s u n d erstan d in g s as being
l e s s a d e q u a t e t h a n i n t h e a r e a o f b a s i c s k i l l s and
p e r s o n a l t r a i t s (p. 73-A).

36
The t w o - p a g e q u e s t i o n n a i r e r e s u l t s r e v e a l

t h a t the

p a r t i c i p a n t s had
d i s s i m i l a r p e r c e p tio n s in a l l e i g h t b u s in e s s un­
d erstan d in g s (understanding of:
b u s i n e s s and
o ffic e e th ic s , business terminology, business
t r e n d s , o u r f r e e e n t e r p r i s e s y s t e m , company o r ­
g an izatio n s, c o st c o n tro l in the o f f ic e , the r o le
o f em p lo y e e s u p e r v i s i o n , and t h e i m p o r t a n c e o f
o f f i c e s a f e t y ) (p. 73-A).
K e s t e n ’s (1980)

study

included

152 s t u d e n t t e a c h e r s

f r o m 27 o f t h e 303 N a t i o n a l A s s o c i a t i o n f o r B u s i n e s s T e a c h e r
Education

institutions.

It

attem pted to determ ine "the

r e l a t i o n s h i p t h a t e x i s t s between b u s in e s s e d u c a tio n
teachers’ a b ility
possible
ferent

to a n a l y z e economic p r o b l e m s and p r o p o se

s o l u t i o n s when t h e p r o b l e m s a r e p r e s e n t e d

contexts"

student

(p.

1 3 5 8 - A) .

Questions for

in d i f ­

the Kesten

s t u d y were o b t a i n e d from t h e T e s t of. U n d e r s t a n d i n g i n P e r ­
s o n a l Economics (p.
by t h e r e s e a r c h e r

13 5 8 - A) .

Two o f t h e c o n c l u s i o n s d r a wn

are:

(1)
The b u s i n e s s e d u c a t i o n s t u d e n t t e a c h e r s
i n v o l v e d in t h i s study were a b l e to propose c o r r e c t
s o l u t i o n s to economic p rob lem s posed in a p e r s o n a l
use c o n te x t w ith a higher degree o f p r o f ic ie n c y
t h a n a n o r m i n g s a m p l e o f g r a d e 12 b u s i n e s s e d u c a ­
tion students.
( 2)
The b u s i n e s s e d u c a t i o n s t u d e n t t e a c h e r s
i n v o l v e d in t h i s study were not a b l e to propose
c o r r e c t s o l u t i o n s to economic p ro b le m s posed i n a
c o l l e g i a t e contex t with as high a degree of p r o f i ­
c ie n c y a s a norming p o p u l a t i o n o f u n i v e r s i t y s t u ­
d e n t s (p. 1358-A).
Jackstadt

(1981) examined t h e r e l a t i o n s h i p between

s u b j e c t s ’ economic k n o w l e d g e and t h e i r a t t i t u d e s
U.S. e c o n o m i c

s y s t e m and b u s i n e s s and

labor

toward the

unions.

The

sa m p l e p o p u l a t i o n was 1,950 H aw aii an s t u d e n t s i n g r a d e s t e n

37
t h r o u g h t w e l v e f r o m 19 H a w a i i p u b l i c s c h o o l s i n t h e
of

1979.

spring

Two o f t h e f i n d i n g s a r e :

(1)
S t u d e n t s a t t i t u d e s toward th e American
economic s y st e m , b u s i n e s s , and u n i o n s a r e a f f e c t e d
p o s i t i v e l y by t h e amount o f eco nom ic k n o w l e d g e t h e y
p o s s e s s , and
(2)
economic l e a r n i n g p r e d i c t s p o s i t i v e
changes in s t u d e n t s 1 a t t i t u d e s toward th e American
economic s y s t e m , b u s i n e s s , and l a b o r u n i o n s (p. 650-A).
Ec o n o mi c k n o w l e d g e a n d l e a r n i n g w e r e m e a s u r e d by
students'

s c o r e s on t h e T e s t o f E c o n o m i c L i t e r a c y a n d a t t i ­

t u d e s w e r e m e a s u r e d by s c a l e s d e v e l o p e d by t h e r e s e a r c h e r .
Jackstadt states:

" I t d o e s a p p e a r t h a t k n o w l e d g e o f e c o n o m­

i c s enhances high school

s t u d e n t s ' a p p r e c i a t i o n o f t h e Amer­

i c a n econom ic s y s t e m and c e r t a i n o f t h e

in s titu tio n s within

t h a t s y s te m " (p. 65 0-A ).
A p p l y i n g Economic U n d e r s t a n d i n g

in..the., WQE.kBla.sfi
A number o f a u t h o r s h a v e b e e n c o n c e r n e d a b o u t t h e
s p e c i f i c problem o f s tu d e n t s being a b l e to a p p ly t h e i r
economic u n d e r s t a n d i n g

in the workplace.

F e r s h (1970) b e l i e v e s i t
education

is

im perative for business

s t u d e n t s t o r e c e i v e an economic e d u c a t i o n b e f o r e

permanently e n te rin g

the workplace.

Since the stan d ard of l i v i n g of a s o c ie ty de­
p e n d s i n l a r g e p a r t on t h e t o t a l g o o d s and s e r v i c e s
a v a i l a b l e (Gross N a tio n a l P ro d u ct), the performance
o f i n d i v i d u a l s in t h e i r p l a c e o f work i s o f g r e a t
significance.
Through economic u n d e r s t a n d i n g , they
c a n e q u i p t h e m s e l v e s t o make t h e b e s t u s e o f t h e
v a r i o u s f a c t o r s o f p r o d u c t i o n a v a i l a b l e and e n ­
t r u s t e d t o t h e m.
I n d i v i d u a l l y and c o l l e c t i v e l y ,
t h e y can a p p l y e c o n o m i c s p r i n c i p l e s and t o o l s o f
a n a l y s i s t o e v a l u a t e a nd i n c r e a s e t h e i r p r o d u c t i v ­
ity.
The r e l a t i o n s h i p s b e t w e e n e m p l o y e r s a n d

38
e m p l o y e e s a n d among a l l e m p l o y e e s c a n b e c o n d u c t e d
i n w a y s t h a t a r e c o n d u c i v e t o o p t i mu m o u t p u t ,
s h a r e d r e s p o n s i b i l i t i e s , and f u l f i l l m e n t f o r a l l .
As e c o n o m i c e n t e r p r i s e s a n d t h e i n d i v i d u a l f u n c ­
t i o n i n g a s p a r t o f them e x e m p l i f y s u ch u n d e r s t a n d ­
i n g and b e h a v i o r , i t w i l l be r e f l e c t e d i n an
e c onomy mo r e c a p a b l e o f m e e t i n g t h e n e e d s a n d
w a n t s o f a l l i t s p e o p l e ( p. 9 2 ) .
Frankel

(1970) r e i t e r a t e s t h a t one g o a l o f b u s i n e s s

e d u c a t i o n i s " p r e p a r i n g a s t u d e n t to q u a l i f y f o r employment
in the b u sin e ss world."

He c o n t i n u e s :

the development of o f f ic e ,
tary accounting s k i l l s "
is

( p.

"This area

involves

sales,

b o o k k e e p i n g , and e l e m e n ­

167) .

F r a n k e l e x p l a i n s why i t

i m p o r t a n t to i n t e g r a t e economic c o n c e p t s i n t o t h e b u s i ­

n e s s e d u c a t i o n program:
Any c ompany e m p l o y e e s h o u l d b e p r o f i c i e n t
i n t h e s k i l l s o f h i s p o s i t i o n , b u t he c a n n o t be an
e f f e c t i v e p a r t i c i p a n t i n company o p e r a t i o n s i f he
f a i l s to u n d e r s t a n d the economics o f th e company's
operation.
His o p p o r t u n i t i e s for advancement, h i s
m o t i v a t i o n to u t i l i z e h i s t a l e n t s most e f f i c i e n t l y ,
h i s r e m u n e r a t i o n , and h i s u n d e r s t a n d i n g o f c o r p o ­
r a t e d e c i s i o n s w o u l d be s e v e r e l y l i m i t e d w i t h o u t a
k n o w l e d g e o f e c o n o m i c a n a l y s i s ( p. 167) .
Olson (1972)

states:

B u s i n e s s e d u c a t o r s , mor e t h a n a n y o t h e r g r o u p
o f t e a c h e r s , h a v e r e a s o n s t o be v i t a l l y c o n c e r n e d
a b o u t th e economic l i t e r a c y o f t h e i r s t u d e n t s .
If
t h e young b u s i n e s s e m ployee i s t o f i l l h i s n i c h e
p r o p e r l y i n a b u s i n e s s o f f i c e o r s t o r e , he must
know s o m e t h i n g mor e t h a n how t o t y p e a l e t t e r ,
r e c o r d a t r a n s a c t i o n , o p e r a t e an o f f i c e m achine, or
w a i t on a c u s t o m e r .
He m u s t know s o m e t h i n g a b o u t
t h e b u s i n e s s o r g a n i z a t i o n o f w h i c h he i s a p a r t ,
and a b o u t t h e eco nom ic s y s te m i n w h ich t h e b u s i ­
ness, i t s custom ers, h is employer, h is fe llo w
w o r k e r s , a n d he h i m s e l f a r e s i g n i f i c a n t e l e m e n t s .
. . . he m ust be a b l e t o d i s t i n g u i s h f a c t from
o p i n i o n , p r i n c i p l e f r o m i l l u s t r a t i o n , a nd s c i e n ­
t i f i c a n a l y s i s f r o m u n r e a s o n e d p r e j u d i c e ( p. 2 6 ) . "
Olson c o n s id e r s i t e s s e n t i a l for b u s in e s s te a c h e r s
to teach

the broader a s p e c ts of b u s in e s s ed ucation:

39
B u s i n e s s t e a c h e r s s h o u l d be c o n c e r n e d a b o u t
economic e d u c a t i o n a l s o b e cau s e knowledge o f th e
economic a s p e c t s o f l i v i n g i s v i t a l l y r e l a t e d t o
any w e l l - r o u n d e d p r e p a r a t i o n f o r competency i n
b u s i n e s s s k i l l s and p r a c t i c e s .
Programs in b u s i ­
n e s s e d u c a t io n p r e p a r e p u p i l s f o r j o b s , a most
important function.
S k i l l s in typew riting, sh o rt­
ha nd , a r i t h m e t i c , b o o k k e e p i n g , and s e l l i n g a r e a l l
p a r t o f t h i s program.
At t h e same t i m e , i t i s
i m p o r t a n t to b u i l d an u n d e r s t a n d i n g o f our b u s i n e s s e c o n o m i c s y s t e m a n d o f t h e r e a s o n s why t h e s e
s k i l l s a r e need ed f o r h o l d i n g j o b s and o b t a i n i n g
p r o m o t i o n s b a s e d on i n c r e a s e d a b i l i t y a nd i m p r o v e d
experience.
But t h e r e a r e e v en b r o a d e r a s p e c t s to
b u s i n e s s e d u c a t i o n t h a t must r e c e i v e s e r i o u s a t ­
tention.
I t i s e s s e n t i a l th a t workers understand
t h e s o c i o - p o l i t i c a l and e c o n o m i c s y s t e m s i n w h i c h
t h e y w o r k so t h a t a s v o t e r s a n d c i t i z e n s t h e y c a n
p r e s e r v e t h e s t r e n g t h s and c o r r e c t t h e w e a k n e s s e s
o f t h o s e s y s t e m s (p. 27).
Olson en co u rag es the i n c l u s i o n o f u n d e r s ta n d in g in
secretarial

or o f f i c e

p ractice courses:

A p ro perly prepared business teacher, in ad di­
t i o n t o b e i n g a b l e t o a c c o m p l i s h much i n s u c h a
c o u r s e , w i l l a l s o be a b l e t o e x t e n d h i s t e a c h i n g o f
e c o n o m i c p r i n c i p l e s and c o n c e p t s i n t o many o f t h e
more commo nl y o f f e r e d b u s i n e s s c o u r s e s .
These
courses include general business offered e ith e r a t
the freshman-sophomore l e v e l or l a t e r a t th e s e n io r
l e v e l ; a l s o bookkeeping, b u s in e s s law, b u s in e s s
m a n a g e m e n t , a nd s e c r e t a r i a l o r o f f i c e p r a c t i c e
(p. 27).
Olson r e f e r s s p e c i f i c a l l y to v o c a tio n a l b u s in e s s /
office curricula:
Even i n c o u r s e s such a s o f f i c e o r s e c r e t a r i a l
p r a c t i c e , i t i s p o s s i b l e to d e a l w ith fu n dam ental
economic c o n c e p t s e f f e c t i v e l y .
The n e e d f o r a n
econom ic use o f l a b o r and o t h e r r e s o u r c e s i n a
b u s i n e s s o f f i c e c a n , and s h o u l d b e , s t r e s s e d i n
s h o w i n g t h e n e e d f o r economy i n m e e t i n g e f f e c t i v e l y
th e e v e r - p r e s e n t c h a l l e n g e o f c o m p e t i t i o n i n our
f r e e e n t e r p r i s e system.
In a s e n se , th e whole
course d e a l s w ith the development o f e f f i c i e n t
w o r k e r s w i t h o u t w h i c h i t w i l l be d i f f i c u l t f o r t h e
e m p l o y e r s t o be s u c c e s s f u l i n t h e i r b u s i n e s s o p e r a ­
t i o n s (pp. 27-28).

40
Y e r ia n (1972) u r g e s t e a c h e r s to t a k e a b ro ad view:
Every b u s in e s s te a c h e r needs to a p p r e c i a t e the
’’a l l " o f B u s i n e s s E d u c a t i o n — t o h a v e a w o r k i n g
k n o w led g e o f a l l i t s com ponent p a r t s . I f he i s
t r y i n g t o t e a c h economic u n d e r s t a n d i n g s o n l y b e ­
c a u s e s omeone h a s s a i d h e s h o u l d , r a t h e r t h a n b e ­
c a u s e he r e a l l y b e l i e v e s t h a t s u c h i n s t r u c t i o n i s
an i n t e g r a l p a r t o f e v e r y s t u d e n t ' s l e a r n i n g , he i s
not p ro p e rly prepared for the task o f h elp in g
American youth o b t a i n a b e t t e r u n d e r s t a n d i n g o f t h e
economic i m p a c t s t h a t b e a r upon our e v e r y d a y l i f e
(p. 29).
Darcy (1969) h a s n o t e d t h e b r o a d i m p l i c a t i o n s o f
a s t u d e n t ’s u n d e r s t a n d i n g o f t h e e c o n o m i c

system:

Ec o n o mi c u n d e r s t a n d i n g c a n show w h a t r o l e t h e
i n d i v i d u a l w o r k e r s p l a y i n h e l p i n g t h e economic
system a s a whole determ in e th e o v e r - a l l l e v e l of
p r o d u c t i o n (how much i s p r o d u c e d ) , t h e c o m p o s i t i o n
o f p r o d u c t i o n (what k i n d s o f goods and s e r v i c e s
a r e p r o d u c e d ) , and t h e d i s t r i b u t i o n or s h a r i n g o f
t h e n a t i o n ' s i n c o m e a n d g o o d s a n d s e r v i c e s among
t h e v a r i o u s me mb e r s o f s o c i e t y ( f o r whom t o p r o ­
duce).
T h i s u n d e r s t a n d i n g c a n h e l p hi m a p p r e c i a t e
how h e , a s a p r o d u c t i v e w o r k e r , c o n t r i b u t e s p e r ­
s o n a l l y t o a c h i e v i n g (or p u r s u i n g ) t h e n a t i o n ’s
economic g o a l s o f f u l l p r o d u c t i o n , freedom o f
c h o i c e , s t a b l e g r o w th , e q u a l o p p o r t u n i t y , economic
j u s t i c e and s e c u r i t y , and i n t e r n a t i o n a l b a l a n c e
(pp. 6 5 -6 6 ).
Darcy adds:
Work i s p a r t o f t h e e c o n o m i c p r o c e s s , b u t i t i s
a l s o mo r e :
work i s a s o c i a l a r r a n g e m e n t .
It
m eets— or h a s t h e p o t e n t i a l to m eet— c e r t a i n non­
e c o n o m i c s o c i a l a nd p s y c h o l o g i c a l n e e d s o f man a s
w e l l a s h e l p i n g t o p r o d u c e g o o d s and s e r v i c e s and
e a r n i n g an income.
Work i s n o t m e r e l y a m e a n s t o
a n end (money a n d g o o d s ) — b u t i s a w o r t h y a c t i v i t y
and an end i n i t s e l f (p. 66).
According to Nolen e t a l .
cant federal contribution

(1967),

the most s i g n i f i ­

t o b u s i n e s s e d u c a t i o n may be

P u b l i c Law 8 8 - 2 1 0 :
The V o c a t i o n a l E d u c a t i o n A c t o f 1963 h o l d s t h e
most prom ise f o r b u s i n e s s e d u c a t i o n . . . .
This
a c t i s d e s i g n e d t o s t r e n g t h e n and im p ro v e t h e

41

q u a l i t y o f v o c a t i o n a l e d u c a t i o n and t o e x p a n d t h e
v o c a tio n a l education o p p o r tu n itie s in the nation.
F o r t h e f i r s t t i m e , f e d e r a l money i s p r o v i d e d f o r
e d u c a t i o n f o r t h e o f f i c e o c c u p a t i o n s (p. 55).
The 1963 V o c a t i o n a l
a n d 1981.

E d u c a t i o n A c t wa s a me nd e d i n

These f e d e r a l monies a r e a v a i l a b l e

education courses t h a t adhere to
Nolen s t a t e s :
economic e d u c a t i o n ,
i s designed to r a i s e

1968,

197 6,

to o f f i c e

the g u id e lin e s.

"It is clear

t h a t t h e new e m p h a s i s on

from e l e m e n t a r y s c h o o l t h r o u g h c o l l e g e ,
t h e l e v e l o f economic l i t e r a c y on t h e

p a r t s o f t h e a d u l t s and y ou ng p e o p l e o f t h i s c o u n t r y "
( p.

161) .

He a d d s t h a t

" s o m e t h i n g " must be done a b o u t t h e

d e p th o f economic u n d e r s t a n d i n g o f p e o p le b ecau se o f th e
n a tio n 's experience with

the d e p re ssio n ,

recessions,

and

war s .
As h a v e many w r i t e r s ,

No len a c k n o w l e d g e s t h e low

percentage of stu d en ts e n r o lle d

i n e c o n o m i c s c o u r s e s and t h e

l a c k o f economic k n o w le d g e on t h e p a r t o f A m e ric a n s.

He

b e l i e v e s t h e " me r e a d d i n g o f c o u r s e s i n e c o n o m i c s p r e s e n t s
no s o l u t i o n

to

the

p r o b l e m " (p.

162) ,

He s t a t e s t h a t t h e p u r p o s e o f e c o n o m i c e d u c a t i o n
i s to r a is e
a t which a l l

th e l e v e l o f economic u n d e r s t a n d i n g to t h e p o i n t
p e rso n s w i l l p o s s e s s th e b a s i c knowledge r e ­

q u i r e d t o make t h o s e
w ill

i n d i v i d u a l and g r o u p d e c i s i o n s t h a t

b r i n g t h e optimum i n economic

satisfaction

(p.

16 3) .

N o l e n n o t e s t h a t "economic c o n c e p t s c a n be and a r e
d e v e l o p e d in b u s i n e s s c o u r s e s where i n t e g r a t i o n
d e s i r a b l e " (p. 167).

is

42
Nu me r ou s s t u d e n t s d r o p o u t o f o r do n o t go b e y o n d
high

school.

Job p r e p a r a t i o n to

secondary l e v e l

s ecure employment fo r

students is e s s e n tia l.

Nolen s t a t e s :

To p r e p a r e s t u d e n t s a s c o m p e t e n t b u s i n e s s
e m p l o y e e s wa s t h e f i r s t a n d s t i l l i s t h e c h i e f
o b j e c t i v e o f b u s i n e s s e d u c a t i o n , a nd we c a n n o t
j u s t i f y t h e s p e n d i n g o f p u b l i c money on a t y p e o f
education t h a t p reten d s to prepare for b u sin ess
jo b s b u t in r e a l i t y does not produce a c c e p t a b l e
r e s u l t s (p. 11).
N o l e n e l a b o r a t e s on t h e n e e d f o r a d e q u a t e p r e p a r a ­
tion

in high school:
The h i g h s c h o o l b u s i n e s s g r a d u a t e w i l l
o r d i n a r i l y e n t e r t h e b u s i n e s s w o r l d a s an o f f i c e
w o r k e r o r a s a s a l e s p e r s o n i n o r d e r t o make u s e o f
h i s t r a i n i n g and i n o r d e r t o e a r n income and o b t a i n
p r a c tic a l experience.
W i t h i n a few y e a r s , h o w e v e r ,
some w i l l b e o p e r a t i n g t h e i r own s m a l l b u s i n e s s e s .
W h e th e r he i n t e n d s t o r e m a i n an e m p l o y e e f o r a
b u s i n e s s o r h a v e a b u s i n e s s o f h i s own, t h e h i g h
s ch o o l b u s i n e s s s t u d e n t s h o u ld be g i v e n , in h i s
b u s in e s s c l a s s e s , the o p p o rtu n ity to d e v e lo p a type
o f o c c u p a t i o n a l i n t e l l i g e n c e w h i c h m i g h t be c a l l e d
b u s in e s s -e c o n o m ic competency.
As a r e s u l t o f t h i s
s t u d y , t h e i n d i v i d u a l i n b u s i n e s s s h o u l d be a b l e to
understand the e f f e c t th a t the passing o f l o c a l
o r d i n a n c e s and o t h e r l e g i s l a t i o n i s l i k e l y t o h a v e
u p o n h i s c o mpa ny .
He s h o u l d b e a b l e t o u n d e r s t a n d
what t h e e f f e c t would be o f a n o t h e r company's
m o v i n g i n t o o r o u t o f t h e a r e a , how t h e r i s i n g
p r ic e l e v e l might a f f e c t customer p u rch ases o f h i s
company's p r o d u c t s , the im portance o f w e l l - k e p t
b u s i n e s s r e c o r d s a n d when a n d how t a x r e p o r t s m u s t
b e s u b m i t t e d , w h e t h e r he s h o u l d o r g a n i z e h i s s m a l l
b u s i n e s s a s a c o r p o r a t i o n o r a s a p a r t n e r s h i p , and
how h i s co mp any c a n r e d u c e r i s k o f e c o n o m i c l o s s
through purchasing the proper insurance.
He s h o u l d
p o s s e s s s u c h k n o w l e d g e s a s how t h e s t o r e i n w h i c h
he w o r k s c a n make a f t e r - h o u r s b a n k d e p o s i t s a n d t h e
m o s t e f f i c i e n t a n d e c o n o m i c way o f c o m m u n i c a t i n g
with customers or b u sin e ss personnel in s p e c if ic
situations.
Such c o m p e t e n c i e s a r e p r i c e d i n t h e
b u s i n e s s w o r l d a n d t h e y c a n b e , and o f t e n a r e ,
d e v e lo p e d th ro u g h high s c h o o l b u s i n e s s c o u r s e s and,
a t a mor e a d v a n c e d l e v e l , i n p o s t - s e c o n d a r y
b u s in e s s co u rse s (pp. 17-18).

43
Tonne ( 1 9 6 1 ) ,
U niversity,

a p r o f e s s o r o f e d u c a t i o n a t New Yor k

c o n sid e rs "the development of a b e tte r

under­

s ta n d i n g o f economic r e l a t i o n s h i p s . . . u n i q u e l y th e func
tio n of the

school."

He c o n t i n u e s :

The a v e r a g e b u s i n e s s o r g a n i z a t i o n w i l l n o t , a n d
p r o b a b l y c a n n o t , make c e r t a i n t h a t e a c h o f i t s
w o r k e r s h a s a c o m p l e t e and u n b i a s e d u n d e r s t a n d i n g
of the r e l a t i o n s of t h a t p a r t i c u l a r b u sin e ss to the
e n t i r e economic s t r u c t u r e .
The i n d i v i d u a l s t e n o g r a ­
p h e r i n a n a i r t r a n s p o r t company d o e s n o t n e e d t o
know a l l a b o u t t h e p r o c e s s o f a i r s h i p b u i l d i n g o r
o f a e r o d y n a m i c s , b u t he d o e s n e e d t o h a v e a n a w a r e ­
ness o f the r e l a t i o n s h i p of th e se developm ents to
h i s work in p a r t i c u l a r and to t h e s o c i a l p r o c e s s in
general.
This i s tru e for a l l o f us.
E c o n o mi c
i l l i t e r a c y i s t o o common t o n e e d mo r e d i s c u s s i o n o f
i t s e x i s t e n c e (p. 47).
Concerning secondary e d u c a tio n ,

Ton ne s t a t e s :

On t h e h i g h s c h o o l l e v e l , t h e s t u d e n t s h o u l d be
i n t r o d u c e d t o t h e s t u d y o f economic l i f e by means
o f wor d p i c t u r e s , c o n c r e t e s i t u a t i o n s , a n d d e f i n i t e
p r o b l e m s , r a t h e r t h a n by a b s t r a c t r u l e s a n d p r i n c i ­
p l e s . Whatever t h e o r e t i c a l m a t e r i a l i s i n v o l v e d
s h o u l d be p r e s e n t e d i n t e r m s o f p r a c t i c a l s i t u a ­
t i o n s and o n l y a s a means o f r e l a t i n g t h e s i t u a t i o n
to th e s t u d e n t fs p r e s e n t or f u t u r e e x p e r i e n c e s .
E s s e n t i a l l y , the high school should s t r i v e to
make t h e s t u d e n t e c o n o m i c a l l y l i t e r a t e .
He s h o u l d
n o t be t a u g h t t h e o l d - t i m e t h e o r e t i c a l e x p l a n a t i o n s
fo r economic a c t i v i t y .
In th e f i n a l a n a l y s i s ,
e c o n o m i c s i s n o t h i n g mo r e t h a n a s p e c i a l i z e d s t u d y
o f human b e h a v i o r .
I f s t u d e n t s c a n b e made t o
r e a l i z e t h a t human b e i n g s a r e l a r g e l y c o n d i t i o n e d
by e n v i r o n m e n t a n d n o t b y t h e a r b i t r a r y t h e o r i e s
f o r m u la te d in economic t e x t s , th e s c h o o l w i l l have
p e r fo r m e d a g r e a t s e r v i c e (p. 359).
Tonne o f f e r s

specific

suggestions:

R e c e n t d a t a i n d i c a t e t h a t t h e numbe r o f s t u ­
d e n ts ta k in g economics i s d e c r e a s in g , w h ile e n r o l l ­
m e n t i n c o u r s e s i n t h e p r o b l e m s o f A m e r i c a n d e mo c ­
r a c y and o t h e r s o c i a l s t u d i e s i s i n c r e a s i n g .
Such
c o u r s e s , ho w e v e r, d e a l w i t h s o c i a l and p o l i t i c a l ,
a s w e l l a s economic l i f e ; h en ce, a t b e s t th e y can
g i v e l i t t l e a t t e n t i o n to economic s i t u a t i o n s .
Perhaps s p e c ia l c o u rse s in economics to supplement
the c o u r s e s in p ro b le m s o f American democracy a r e

44
needed.
I f s o , t h e y may be a l l o c a t e d t o t h e b u s i ­
ness department.
A n o th e r s u g g e s t i o n would be t o
te a c h economics as a p a r t o f advanced b u s in e s s
c o u r s e s , which a r e i n c r e a s i n g l y b e in g i n t r o d u c e d in
t h e h i g h s c h o o l program (pp. 360-6 1 ).
The P o l i c y Framework. ;
I hs_i l £££. »
PCBEE. a n d t h e S t a t e _ Q f _ M i a h l g a n
J o i n t C o u n c i l on E c o n o m i c E d u c a t i o n
S e v e r a l o r g a n i z a t i o n s have been s t r i v i n g to i n t e ­
g r a t e economic e d u c a t i o n i n t o t h e s c h o o l c u r r i c u l u m ,

but

p e r h a p s n o n e i s mo r e p r o m i n e n t t h a n t h e J o i n t C o u n c i l on
E c o n o mi c

Education

izations

supporting

( JCEE) .

H ill

t h e J CEE ' s p r o g r a m s i n c l u d e

E c o n o mi c A s s o c i a t i o n ,
Studies,

According to

(1980),

organ­

t h e American

the N ational Council for the S o c ia l

and t h e N a t i o n a l A s s o c i a t i o n o f S e c o n d a r y - S c h o o l

Principals

(p.

3979-A).

H ill d e s c rib e s the Council:
The J o i n t C o u n c i l o n E c o n o mi c E d u c a t i o n c e l e b r a t e d
i t s t h i r t i e t h a n n i v e r s a r y i n 1979.
I t wa s o r g a n i z e d f o r
th e purpose o f h e l p i n g to improve t h e economic l i t e r a c y
o f t h e A m e r i c a n p u b l i c t h r o u g h mo r e e f f e c t i v e i n s t r u c ­
t i o n o f e c o n o m i c s i n t h e n a t i o n ‘s s c h o o l s .
I t comprised
a n a f f i l i a t e d c o u n c i l i n a l m o s t e v e r y s t a t e a n d o v e r two
h u n d r e d c e n t e r s o f e c o n o m i c e d u c a t i o n , l o c a t e d on c o l ­
l e g e and u n i v e r s i t y ca mpuses.
The a f f i l i a t e d c o u n c i l s
wer e a b l e t o work e f f e c t i v e l y w i t h l o c a l s c h o o l s y s t e m s .
They o r g a n i z e d w o r k s h o p s f o r t e a c h e r s a n d a d m i n i s t r a ­
t o r s , conducted i n - s e r v i c e p r o j e c t s or h e lp e d l o c a l
s c h o o l s y s t e m s b eco me p a r t o f t h e DEEP C o o p e r a t i n g
S ch o o ls network.
The c e n t e r s t a p p e d t h e s k i l l s o f e c o ­
n o m i c s a n d e d u c a t i o n f a c u l t y me mb e r s f o r u s e i n t h e
e c o n o m i c e d u c a t i o n m o v e me n t ( p. 2 7 6 7 - A ) .
M i c h a e l MacDowell (1979)* p r e s i d e n t o f t h e J o i n t
C o u n c i l o n E c o n o mi c E d u c a t i o n , n o t e s i n t h e A s s o c i a t i o n o f
Mi c h i g a n Ec o n o mi c E d u c a t i o n _Center_,^ _ A n n u a l _ R e o o i ^ t t h a t :
"Our C o u n c i l a n d C e n t e r a f f i l i a t e s

s e r v i c e 447 c o o p e r a t i n g

45
school d i s t r i c t s e n r o llin g

some 9 m i l l i o n

students.

This

s ystem makes t h e J o i n t C o u n c i l t h e l a r g e s t n o n - g o v e r n m e n t a l
education d e liv e ry
continues:

system i n t h e n a t i o n " (p. 5).

"C ertainly there

MacDowell

i s no b e t t e r e q u i p p e d o r g a n i z a ­

t i o n t o b r i n g an u n d e r s t a n d i n g o f o u r economic s y stem t o
s t u d e n t s i n o u r n a t i o n ' s s c h o o l s t h a n t h e J o i n t C o u n c i l and
its

n e t w o r k " (p.

5).

One a f f i l i a t e o f t h e JCEE i s t h e A s s o c i a t i o n o f
M i c h i g a n E c o n o mi c E d u c a t i o n C e n t e r s (AMEEC), o r g a n i z e d

in

1977 a nd c u r r e n t l y h o u s e d a t E a s t e r n M i c h i g a n U n i v e r s i t y .
The a s s o c i a t i o n

i s a n o n p r o f it group d e d ic a te d to in c r e a s in g

i n d e p e n d e n t , c o m p e t e n t e c o n o m i c t h i n k i n g among M i c h i g a n
residents.

The common g o a l o f t h e JCEE and i t s

i n c l u d i n g AMEEC, i s " t o e n c o u r a g e ,
service

improve,

affiliates,

coordinate,

and

t h e e c o n o m i c e d u c a t i o n m o v e me n t " ( D i r e c t o r y o f

A ffiliated

C o u n c i l s and C e n t e r s ,

1 9 8 0,

p.

i).

The M i c h i g a n

o r g a n i z a t i o n p r o v i d e s p r e - s e r v i c e and i n - s e r v i c e economic
e d u c a tio n programs,

including business education.

P o l i c i e s Commission f o r B u s i n e s s
a n d . E c o n o m i c Ed u c a t i o n
Included

in t h i s

section are statem ents in d icatin g

t h a t t h e P o l i c i e s Commission f o r
Education

(PCBEE)

B u s i n e s s a n d Ec o n o mi c

supports in te g ra tin g

economic c o n c e p ts

into ex istin g business education courses.
refer

The s t a t e m e n t s

to the b u sin e ss education teacher as q u a l i f i e d for

e f f e c t i v e l y t e a c h i n g b u s i n e s s and economic u n d e r s t a n d i n g to

46
p r e p a r e s t u d e n t s t o be e c o n o m i c a l l y l i t e r a t e
m a rk e t and t o im prove t h e i r
Conover e t a l .

in the lab o r

economic system.

(1979)»

in d escrib in g

t h e PCBEE,

state:
F o r n e a r l y two d e c a d e s t h e P o l i c i e s C o m m i s s i o n
f o r B u s i n e s s a n d Ec o n o mi c E d u c a t i o n h a s f o r m u l a t e d
p o l i c i e s f o r b u s i n e s s e d u c a t i o n and d i s s e m i n a t e d
p o l i c y s t a t e m e n t s t o b u s i n e s s e d u c a t o r s and adm in­
i s t r a t o r s (p. i i ) .
Matthews

(1979) a d d s h e r o p i n i o n :

The s t a t e m e n t s w h i c h a r e e m b r a c e d by t h i s d o c u ­
ment a r e r e p r e s e n t a t i v e o f i n n o v a t i v e i d e a s c o n ­
c e i v e d b y s ome o f t h e m o s t a s t u t e m i n d s i n b u s i n e s s
education.
The p o l i c i e s w e r e d e v e l o p e d by p i l l a r s
o f t h e B u s i n e s s E d u c a t i o n f i e l d s , a nd e a c h s t a t e ­
me n t c o n t a i n s wi s d o m a nd i n s i g h t .
A l t h o u g h many o f
th e s t a t e m e n t s were is s u e d y e a r s ago, t h e i r r e l e ­
vancy i s t i m e l e s s .
Ea c h s t a t e m e n t r e p r e s e n t s h o u r
up on h o u r o f d e b a t e a n d d i s c u s s i o n ; e a c h s t a t e m e n t
i s t h e c u l m i n a t i o n o f y e a r s o f d e d i c a t e d s e r v i c e on
t h e p a r t o f h i g h l y e s t e e m e d b u s i n e s s e d u c a t o r s (p. i ) .
The f o l l o w i n g p a r a g r a p h s a r e f r o m t h e t w e n t y - f i v e
policy

statem ents published

i n 1979 by t h e PCBEE.

1.
. . . we b e l i e v e i t i s i m p e r a t i v e t h a t ALL
y o u n g p e o p l e be a d e q u a t e l y p r e p a r e d t o d e a l w i t h
b u s i n e s s - e c o n o m i c i s s u e s and p r o b l e m s . . .
We
hope, however, t h a t secondary s c h o o l a d m i n i s t r a t o r s
w i l l seek a l s o to s tr e n g th e n th e v o c a t i o n a l prep a­
r a t i o n o f y o u n g p e o p l e who a r e s e e k i n g b u s i n e s s
c a r e e r s u p o n g r a d u a t i o n f r o m h i g h s c h o o l ( p . 1).
2.
The c o u r s e o r c o u r s e s i n b u s i n e s s - e c o n o m i c
u n d e r s t a n d i n g s h o u l d b e o f f e r e d by t h o s e t e a c h e r s ,
r e g a r d l e s s o f t h e a r e a s t h e y r e p r e s e n t , who a r e
best qualified.
T h o s e t e a c h e r s who h a v e b e e n b u s i ­
ness o rie n te d through courses in the f i e l d of b u s i­
n e s s a nd e c o n o m i c s a n d t h r o u g h b u s i n e s s e x p e r i e n c e
a r e most l i k e l y to p r o v id e th e kind o f e d u c a t i o n a l
program t h i s l e t t e r p r o p o s e s (p. 2).
3* B u s i n e s s e d u c a t i o n h a s a n i m p o r t a n t c o n t r i ­
b u t i o n t o make t h e e c o n o m i c l i t e r a c y o f e v e r y h i g h
s c h o o l boy and g i r l (p. 3).

47
4.
S p e c i a l e f f o r t s h o u l d b e made t o a p p l y
e c o n o m i c u n d e r s t a n d i n g s and a p p r e c i a t i o n s t o p e r t i ­
n e n t t o p i c s and a c t i v i t i e s i n a l l b u s i n e s s s u b j e c t s
(p. 3).
5.
The m o d e r n c o u r s e i n G e n e r a l B u s i n e s s
s h o u l d p r o v i d e a b a s i c b a c k g r o u n d a nd a f r a m e o f
re fe re n c e for j u n io r - s e n io r s tu d ie s in the s o c ia l
s c i e n c e s a n d i n b u s i n e s s ( p . 3)*
6.
I f th e American secondary s c h o o l s f a i l to
p r e p a r e y o u n g p e o p l e t o make i n f o r m e d d e c i s i o n s
ab o u t economic p ro b le m s as w e l l a s to be s u c c e s s f u l
i n o c c u p a t i o n a l l i f e , o u r young w i l l be i l l e q u i p p e d
to l i v e in t h e s e t i m e s (p. 6).
7. A b le young p e o p l e a r e n e e d e d n o t o n l y i n
t h e f i e l d s o f s c i e n c e and m a t h e m a t i c s .
The y a r e
a l s o u r g e n t l y needed in i m p o r t a n t p o s i t i o n s as
m a n a g e r s , s u p e r v i s o r s , and a s management p e r s o n n e l ,
(p. 6).
8.
. . . m o st o f t h e e i g h t o u t o f t e n b o y s and
g i r l s now i n e l e m e n t a r y s c h o o l w i l l s e e k t o e n t e r
the lab o r market w ithout a c o lle g e degree (p. 6 ).
9.
U n l e s s t h e s e young p e o p l e a r e a d e q u a t e l y
p r e p a r e d in t e r m s o f j o b s k i l l s and i n t e r m s o f
economic b ack g ro u n d s to d e a l w i t h t h e i r p e r s o n a l
and p o l i t i c a l p r o b l e m s , t h e s c h o o l s w i l l be bl am ed
f o r f a i l i n g t o s e r v e t h e n e e d s o f a l l young p e o p l e
(p. 6).
10.
Ea c h s t u d e n t s h o u l d d e v e l o p a n a w a r e n e s s
o f t h e t o t a l econo mic s y s t e m and i t s dynamic n a t u r e
i f he i s t o p a r t i c i p a t e e f f e c t i v e l y i n i m p r o v i n g
t h e economic s y ste m and m a i n t a i n i n g a u s e f u l p l a c e
for h im se lf w ith in i t (p. 19).
11.
The s t r o n g c a s e f o r e c o n o m i c e d u c a t i o n h a s
been p r e s e n t e d and u n d e r s t o o d d u r i n g t h e p a s t de c a d e .
The g r o w i n g c o n c e r n o f l e a d e r s i n b u s i n e s s , l a b o r ,
a g r i c u l t u r e , g o v e r n m e n t , a nd e d u c a t i o n t h a t e c o n o m i c
i l l i t e r a c y be w i p e d o u t h a s r e s u l t e d i n t h e f o r m u l a ­
t i o n o f e f f e c t i v e p r o c e d u r e s and t h e e s t a b l i s h m e n t
o f p r o d u c tiv e programs to a c h ie v e t h a t o b j e c t i v e .
The J o i n t C o u n c i l on Ec o n o mi c E d u c a t i o n wa s f o u n d e d
two d e c a d e s a g o t o p r o v i d e d i r e c t i o n a n d d y n a mi s m t o
t h e movement (p. 20).
12.
B u s i n e s s e d u c a t i o n h a s an i m p o r t a n t c o n t r i ­
b u t i o n t o make t o t h e e c o n o m i c l i t e r a c y o f a l l
s e c o n d a r y s c h o o l s t u d e n t s (p. 21).

48
13.
Encourage g e n e r a l b u s i n e s s t e a c h e r s to te a c h
t h e a p p l i c a t i o n o f economic p r i n c i p l e s t o b u s i n e s s ,
l a b o r , p e r s o n a l , a n d c i v i c p r o b l e m s ( p. 2 4 ) .
14.
D e v e l o p an economic e d u c a t i o n m a t e r i a l s
c e n ter (p. 24).
15.
We B e l i e v e t h a t a P r o f e s s i o n a l T e a c h e r
. . . U n d e r s t a n d s y o u t h and a d u l t s and t h e s i g n i f i ­
c a n t v a l u e s o f b u s i n e s s and economic c o n c e p t s which
c o n t r i b u t e t o t h e d e v e l o p m e n t o f an i n f o r m e d and
e f f e c t i v e member o f s o c i e t y ( p . 3 4 ) .
16.
We B e l i e v e t h a t a P r o f e s s i o n a l T e a c h e r
. . . Through p r e p a r a t i o n and e x p e r i e n c e i d e n t i f i e s
and o r g a n i z e s a body o f k n o w l e d g e i n t o c o n c e p t s ,
u n i t s o f s t u d y , and l e a r n i n g e x p e r i e n c e s ( p . 3 4 ) .
17.
Wi t h e d u c a t i o n , s k i l l s , a n d g u i d a n c e , i t
i s p o s s ib le for in d iv id u a ls to s e l e c t the kinds of
wo r k w h i c h w i l l e n a b l e t h e m t o s a t i s f y e c o n o m i c a n d
psychological needs (p. 35).
1 8. . . . we s t r o n g l y s u p p o r t b u s i n e s s e d u c a ­
t i o n about b u s i n e s s which p r o v i d e s i n s t r u c t i o n for
l e a r n i n g how t h e e n t e r p r i s e b u s i n e s s s y s t e m f u n c ­
t i o n s a n d how t o manage e f f i c i e n t l y o n e * s p e r s o n a l ,
b u s i n e s s , a n d e c o n o m i c l i f e ( p. 3 7 ) .
19.
As c r i t i c a l a s t h e i m p a c t o f f r e e e n t e r ­
p r i s e i s t o t h e A m e r i c a n way o f l i f e , i t i s m i s ­
u n d e r s t o o d and n o t u n d e r s t o o d by t h e g e n e r a l popu­
lace.
Mo s t c i t i z e n s h a v e d i f f i c u l t y u n d e r s t a n d i n g ,
d e s c r i b i n g , o r a p p r e c i a t i n g how t h e e c o n o m i c s y s t e m
functions.
This widespread lack of understanding
and a p p r e c i a t i o n f r e q u e n t l y i s t h e r e s u l t o f f r e e
e n t e r p r i s e c o n c e p t s and p r i n c i p l e s n o t b e i n g t a u g h t
o r b e i n g t a u g h t e f f e c t i v e l y (p. 39).
20.
Business edu cators, because of th e ir ex­
p e r i e n c e in t h e w o r ld o f work a s w e l l a s t h e i r
academic p r e p a r a t i o n in b u s i n e s s , a r e w e l l q u a l i ­
f i e d to t e a c h in t h i s a r e a (p. 39).
21.
F r e e e n t e r p r i s e c o n c e p t s and p r i n c i p l e s
can be t a u g h t a s a s e p a r a t e c o u r s e a s w e l l a s be
in te g ra te d into e x is tin g business courses (p. 39).

49
Michigan Department o f E d u c a tio n
The M i c h i g a n S t a t e

B o a r d o f E d u c a t i o n ( 1 9 8 0 ) e mp h a ­

s iz e s the i n t e r d i s c i p l i n a r y approach to
nomics th ro u g h o u t t h e p u b l i c s c h o o l s .

learn in g about eco­
The Common G o a l s - p f

Michigan Education d e c l a r e s t h a t the g o a l s fo r i t s

schools

" m u s t be common t o a l l

s t u d e n t s i n M i c h i g a n ' s e l e m e n t a r y and

s e c o n d a r y s c h o o l s " ( p.

1).

In the goal

dent Learning," the p u b lic a tio n
needed in o r d e r f o r
function

in

their

states

area
that

entitled

"Stu­

le a rn in g s are

s t u d e n t s " t o s e l e c t and e f f e c t i v e l y
life-career

r o l e s o f w o r k e r s " (p.

7).

One

goal i s t h a t each s tu d e n t should " a c q u ire knowledge of the
principles,

methods,

and g e n e r a l c o n t e n t o f t h e s o c i a l

s c i e n c e s , " which i n c l u d e s a c q u i r i n g "knowledge o f economics
and e c o n o m ic s y s t e m s " (p. 7).
I n Cons umer E c o n o m i c s E d u c a t i o n G u i d e l i n e s , a l s o
p r i n t e d by t h e M i c h i g a n D e p a r t m e n t o f E d u c a t i o n ( 1 9 8 1 ) ,
"Guiding P r i n c i p l e s f o r

the

Co n s ume r E c o n o m i c s E d u c a t i o n i n

Schools" a l s o emphasizes the

interdisciplinary

approach:

The s u c c e s s o f c o n s u m e r e c o n o m i c s e d u c a t i o n
d e p e n d s u p o n t h e s u c c e s s w i t h w h i c h i t c a n be
integrated into various d isc ip lin e s .
I f i t i s to
be r e p r e s e n t a t i v e o f t h e b r e a d t h and sco p e o f r e a l
l i f e c o n d i t i o n s , consumer e c o n o m ic s e d u c a t i o n must
i n c l u d e t h e s o c i a l , p o l i t i c a l , c u l t u r a l , and e c o ­
n omi c i n f l u e n c e s on t h e s e c o n d i t i o n s .
Co n s u me r
economics e d u c a t i o n , th e n , s h o u ld be i n t e g r a t e d
i n t o , and c o r r e l a t e d w i t h , t h e e x i s t i n g s c h o o l
c u r r i c u l u m i n a l l s u b j e c t m a t t e r a r e a s ( p. 8 8 ) .
The p r i n c i p l e s a l s o e m p h a s i z e c o n t i n u o u s e f f e c t by
i n c l u d i n g i n one g o a l :
A ll grade l e v e l s have a d i r e c t r e s p o n s i b i l i t y
t o i n t e g r a t e consumer econom ics e d u c a t i o n c o n c e p t s
in to t h e i r programs.
Con s u me r e c o n o m i c s e d u c a t i o n

50
i n a s c h o o l s h o u l d be d e s i g n e d t o c o o r d i n a t e e f ­
f o r t s in each g ra d e , which r e q u i r e s c o o p e r a t i v e
p l a n n i n g among a l l l e v e l s o f e d u c a t i o n i n c l u d i n g
e l e m e n t a r y , s e c o n d a r y , and a d u l t (p. 90).
T e s t o f Ec o n o mi c L i t e r a c y
The T e s t o f E c o n o mi c L i t e r a c y
cially

(TEL) i s

a commer ­

s o l d i n s t r u m e n t p u b l i s h e d by t h e J o i n t C o u n c i l on

E c o n o mi c E d u c a t i o n ;

it

sells

t h a n 150,000 h a v e been s o l d .

f o r $6 p e r 25 c o p i e s .

More

The TEL wa s a n o u t g r o w t h o f

t h e T e s t o f Economic U n d e r s t a n d i n g

(TEU).

The TEU w a s r e ­

f e r r e d to but not review ed in the Buros E ig hth M ental
surem ents Yearbook.

J a m e s V. M i t c h e l l ,

i n P r i n t I I I f made r e f e r e n c e

Mea­

a u t h o r o f Tes.ts

t o t h e f a c t t h a t t h e TEL w a s a

s u b s t a n t i v e r e v i s i o n o f t h e TEU, w h i c h p r o m p t e d a t e l e p h o n e
call

t o Dr . M i t c h e l l a t t h e U n i v e r s i t y o f N e b r a s k a .

On

A p r i l 9, 1984, Dr. M i t c h e l l s t a t e d t h a t t h e r e v i e w f o r t h e
TEL i s p r e s e n t l y b e i n g c h e c k e d .

Once a p p r o v e d ,

the review

w i l l be e n t e r e d i n t h e B i b l i o g r a p h i c a l R e t r i e v a l S e r v i c e s
u n d e r a c c e s s number 0 9 1 3 2 2 5 8 a n d w i l l
sim ilar

to:

" I n s ummar y,

the t e s t

of the co n ten t c a te g o r ie s i t

begin w ith a sentence

i s a s t r o n g one f o r most

measures."

£an.tsn.t....Cafcfi,gpries
The T e s t o f . E c o n o mi c L i t e r a c y i t e m s a r e b r o k e n down
into

s e v e n economic c o n t e n t c a t e g o r i e s , b a s e d upon t h e

M a s t e r C u r r i c u l u m G u i d e F r a me w o r k ( H a n s e n ,

1977,

pp. 7 - 2 5 ) .

A b r i e f d e s c r i p t i o n o f each o f the c o n te n t c a t e g o r i e s
follows.

51
(A) The B a s i c Ec o n o mi c P r o b l e m - E c o n o m i c s i s
t h a t b r a n c h o f t h e s o c i a l s c i e n c e s w h i c h d e a l s w i t h how
people use p r o d u c tiv e r e s o u r c e s to s a t i s f y t h i e r w ants.
The b a s i c e c o n o m i c p r o b l e m c o n f r o n t i n g i n d i v i d u a l s ,
g r o u p s o f i n d i v i d u a l s , and e n t i r e s o c i e t i e s i s t h a t
r e s o u r c e s a re l i m i t e d r e l a t i v e to t h e i r wants.
This
b a s i c c o n d i t i o n o f s c a r c i t y r e q u i r e s t h e m t o make
c h o i c e s a b o u t how t o u t i l i z e t h e s e r e s o u r c e s m o s t e f f e c ­
t i v e l y in s a t i s f y i n g t h e i r wants.
Were r e s o u r c e s a v a i l ­
a b l e in u n l i m i t e d q u a n t i t i e s , p e o p l e would be a b l e t o
p r o d u c e a n d c o n s u me a l l t h e y w a n t e d .
This would e l i m i ­
n a t e t h e n e e d t o make many d i f f i c u l t d e c i s i o n s a b o u t
resource a llo c a tio n .
In th e absence o f such a w o r ld ,
p e o p l e m u s t make c h o i c e s a n d , t o make s u c h c h o i c e s , t h e y
m u s t h a v e a d e c i s i o n - m a k i n g a p p a r a t u s , w h i c h we c a l l a n
economic system.
The b a s i c e c o n o m i c p r o b l e m o f s c a r c i t y t h a t h a s
c o n f r o n t e d a l l s o c i e t i e s — a n c i e n t and modern, d e v e l o p e d
and u n d e r d e v e l o p e d , c a p i t a l i s t or communist— i s t h e
c e n t r a l p r o b l e m from which a l l o t h e r economic p r o b l e m s
flow.
I t i s t h e s t a r t i n g p o i n t f o r an u n d e r s t a n d i n g o f
economics.
(B) E c o n o m i c S y s t e m s - The way p e o p l e a n d s o c i e ­
t i e s o r g a n i z e economic, l i f e to f i n d a n s w e r s t o th e
q u e s t i o n s p o s e d a b o v e i s c a l l e d a n e c o n o m i c s y s t e m . An
e c o n o m i c s y s t e m c a n be d e s c r i b e d a s t h e c o l l e c t i o n o f
i n s t i t u t i o n s , l a w s , a c t i v i t i e s , c o n t r o l l i n g v a l u e s , and
human m o t i v a t i o n s t h a t c o l l e c t i v e l y g o v e r n e c o n o m i c
decision-m aking.
(C) M i c r o e c o n o m i c s :
R e s o u r c e A l l o c a t i o n and
Income D i s t r i b u t i o n - M i c r o e c o n o m i c s i s t h e s t u d y o f t h e
b e h a v i o r o f i n d i v i d u a l h o u s e h o l d s , f i r m s and m a r k e t s , o f
how p r i c e s a n d o u t p u t s a r e d e t e r m i n e d i n t h o s e m a r k e t s ,
a n d o f how t h e p r i c e m e c h a n i s m a l l o c a t e s r e s o u r c e s and
d i s t r i b u t e s income.
To u n d e r s t a n d w h a t g o o d s a n d s e r ­
v i c e s an e c onomy w i l l p r o d u c e r e q u i r e s t h a t we know how
t h e p r i c e s o f g o o d s a n d s e r v i c e s a r e d e t e r m i n e d , how
t h e s e p r i c e s d e t e r m i n e t h e p a t t e r n o f p r o d u c t i o n , and
how t h i s p a t t e r n i s i n f l u e n c e d b o t h by t h e s t r u c t u r e o f
m a r k e t s a n d by g o v e r n m e n t a c t i o n s .
CD) M a c r o e c o n o m i c s :
E c o n o mi c S t a b i l i t y a n d Gr o w t h .
Macroeconomics i s th e study o f th e f u n c t i o n i n g o f the
economy a s a w h o l e — o f t h e t o t a l o u t p u t o f t h e e c o n o my ,
t h e t o t a l l e v e l o f em pl oyme nt, and mov ements i n t h e
average le v e l of a l l prices.
The e s s e n c e o f m a c r o ­
economics l i e s in a n a ly z in g the d e te r m in a n ts o f a g g re ­
g a t e s u p p l y ( t h e t o t a l p r o d u c t i v e c a p a c i t y o f a n e c o n o m­
i c s y s t e m ) a n d o f a g g r e g a t e demand ( t h e t o t a l s p e n d i n g
by e c o n o m i c u n i t s on t h e g o o d s a n d s e r v i c e s p r o d u c e d ) .
I n t h e s h o r t r u n , t h e main p r o b l e m o f m a c r o e c o n o m i c s i s
why a g g r e g a t e demand s o m e t i m e s e x c e e d s a n d s o m e t i m e s

52
f a l l s s h o r t o f a g g r e g a t e s u p p l y , t h u s b r i n g i n g on i n f l a ­
tio n and/or re c e ss io n .
In the long ru n , macroeconomics
i s c o n c e r n e d p r i m a r i l y w i t h economic g r o w th — i n c r e a s e s
i n t h e p r o d u c t i v e c a p a c i t y o f t h e e c o no my a n d a v e r a g e
r e a l i n c o me p e r p e r s o n .
(E) The W o r l d Economy - E c o n o m i s t s a r e c o n c e r n e d
w i t h e c o n o m i c r e l a t i o n s among n a t i o n - s t a t e s , i n c l u d i n g
i n t e r n a t i o n a l t r a d e and i n v e s t m e n t and i n t e r n a t i o n a l
monetary r e l a t i o n s h i p s .
I n g e n e r a l , e c o n o m i s t s u s e t h e same t o o l s o f a n a l y ­
s i s t o u n d e r s t a n d t h e w o r l d eco nom y a s t h e y do t o u n d e r ­
s t a n d a n a t i o n a l econ omy .
The p r i n c i p l e s u n d e r l y i n g
i n t e r n a t i o n a l t r a d e a r e t h e same a s t h o s e u n d e r l y i n g
domestic tra d e .
Goo ds a n d s e r v i c e s a r e s o l d i n i n t e r ­
n a t i o n a l m a r k e t s a t p r i c e s d e t e r m i n e d b y demand a n d
supply.
However, s p e c i a l p r o b le m s a r i s e i n i n t e r n a ­
t i o n a l a n a l y s i s because of the e x iste n c e of n a tio n a l
b o u n d a r i e s and d i f f e r e n t m o n e t a r y s y s t e m s .
Moreover,
the fre e fu n c tio n in g of market fo rc e s i s modified in
many i n t e r n a t i o n a l m a r k e t s by g o v e r n m e n t i n t e r v e n t i o n i n
t h e form o f t a r i f f s , q u o t a s , s u b s i d i e s , s t a t e t r a d i n g ,
and c a r t e l a c t i o n ( e .g ., o i l ) .
(F) E c o n o mi c I n s t i t u t i o n s - The i n s t i t u t i o n s o f
a n economy a r e o f s e v e r a l k i n d s .
There a r e fo rm al
o r g a n i z a t i o n s , such a s h o u s e h o ld s , c o r p o r a t i o n s , g o v e r n ­
ment a g e n c i e s , b a n k s , l a b o r u n i o n s , and c o o p e r a t i v e s .
There a r e a l s o t h e c u s t o m a r y ways o f d o i n g t h i n g s , such
a s t h e u s e o f money a n d o f c o l l e c t i v e b a r g a i n i n g .
And
t h e r e a r e common p r e v a i l i n g s e t s o f b e l i e f s w h i c h p e r ­
vade an economic s ys t em .
The n a t u r e o f e c o n o m i c i n s t i ­
t u t i o n s v a r i e s d e p e n d i n g on t h e k i n d o f e c o n o m i c s y s t e m ,
a l t h o u g h some i n s t i t u t i o n s a r e common t o a l m o s t a l l
systems.
(G) C o n c e p t s f o r E v a l u a t i n g E c o n o mi c A c t i o n s a n d
P o l i c i e s - The h e a r t o f e c o n o m i c s i s d e c i s i o n - m a k i n g —
c h o o s i n g among a l t e r n a t i v e s .
Economic d e c i s i o n s a r e n o t
made i n a v a c u u m.
R a t h e r , t h e y a r e made i n t h e l i g h t o f
a set of goals.
These g o a l s v a ry from one s o c i e t y to
a n o t h e r , a nd t h e y v a r y among g r o u p s a n d i n d i v i d u a l s
within so c ie tie s.
The g o a l s m o s t e v i d e n t i n t h e m o d e r n
w o r l d , and p a r t i c u l a r l y i n American s o c i e t y a r e :
free­
dom, e c o n o m i c e f f i c i e n c y , e q u i t y , s e c u r i t y , s t a b i l i t y
( f u l l e m p l o y m e n t a nd t h e a b s e n c e o f i n f l a t i o n ) , a n d
growth.
These g o a l s o r c r i t e r i a p r o v i d e means f o r e v a l u a t i n g
t h e p e r f o r m a n c e o f econo mic s y s t e m s and p a r t s o f them,
a s w e l l a s t h e d e s i r a b i l i t y o f e x i s t i n g p r o g r a m s a nd
newly proposed p o l i c i e s .

53
Cognitive. Levels
The T e s t o f Eo on omi c L i t e r a c y i t e m s u s e d i n t h i s
s t u d y a r e a l s o b r o k e n down i n t o f i v e c o g n i t i v e l e v e l s ,

a

v a r i a n t o f B e n j a m i n S. B l o o m ' s t a x o n o m y w h i c h i n c l u d e s s i x
levels.
below.)
"(II)

( The s i x t h wa s o m i t t e d h e r e f o r
The f i v e

cognitive

Comprehension,"

"(III)

a n d "(V) C o m p r e h e n s i o n . "

the reaso n noted

le v e l s are:

"(I) Knowledge,"

A pplication,"

These f i v e

"(IV)

A nalysis,"

l e v e l s are described

m o r e f u l l y i n C h a p t e r 3 a n d A p p e n d i x E, b u t s ome d i s c u s s i o n
o f t h e c o g n i t i v e l e v e l s and domain f o l l o w s .
I n 1956 Bl o o m w r o t e t h e Taxonomy o f E d u c a t i o n
O b j e c t i v e s : ___The C l a s s i f i c a t i o n o f E d u c a t i o n a l - G o a l s ^ H a n d b o o k 1:

C o g n i t i v e Domai n i n w h i c h h e d e t a i l e d

levels.

Dr . Bl oom i s c u r r e n t l y D i s t i n g u i s h e d S e r v i c e P r o ­

fe sso r of Education,

U n i v e r s i t y o f Chicago.

six c o g n i t i v e

He a l s o

is a

l e a d i n g e d u c a t i o n a l r e s e a r c h e r and h a s had numerous
publications.
Bl oom e t a l .

*
( 1 9 8 1 ) c o mme nt e d a b o u t t h e Taxonomy

of Educational O bjectives:
Han db oo k 1, C o g n i t i v e D o m a i n , wa s p u b l i s h e d i n
1956; i t c l a s s i f i e s o b j e c t i v e s w h i c h i n v o l v e i n t e l ­
le c tu a l tasks.
F o r some o f t h e s e o b j e c t i v e s t h e
s t u d e n t h a s t o do l i t t l e mor e t h a n r e m e m b e r ; f o r
o t h e r s th e s t u d e n t must d e te r m in e th e e s s e n t i a l
p r o b l e m and t h e n r e o r d e r g i v e n m a t e r i a l or combine
i t w ith id e a s , methods, or procedures p r e v i o u s l y
learned.
Bloom's c a t e g o r i e s a r e a r ra n g e d a lo n g a continuum:
The t h r e e t a x o n o m i e s p l a c e t h e b e h a v i o r a l
a s p e c t of the o b j e c t i v e w ith in a h i e r a r c h i c a l
framework:
e a c h c a t e g o r y i s assumed t o i n c l u d e
b e h a v i o r mo r e c o m p l e x , a b s t r a c t , o r i n t e r n a l i z e d
than the p re v io u s category.
In the C o g n itiv e

54
Domai n t h e s e c a t e g o r i e s a r e a r r a n g e d a l o n g a
c o n t i n u u m from s i m p l e t o complex . . . ( p . 1 5 0 ) .
Bl oom e t a l . w r o t e a c o n d e n s e d v e r s i o n o f B l o o m ’ s
taxonomy.

The h e a d i n g s o f t h e " C o g n i t i v e Domai n" s e c t i o n

a r e l i s t e d b e lo w and i n d i c a t e
i n t e r m i n o l o g y and u s e .

t h a t t h e taxonomy i s c u r r e n t

Bloom's s y n t h e s i s l e v e l , which i s

p a r t o f t h e " O u t l i n e o f B l o o m ' s Taxonomy o f E d u c a t i o n a l
O bjectives:

Cognitive

Domai n" ( p p . 2 7 1 - 2 7 3 ,

331-333),

is

n o t d e s c r i b e d h e r e b e c a u s e i t w a s o m i t t e d by t h e TEL w o r k i n g
committee.
is

taught

The c o m m i t t e e p r e s u m e d t h a t l i t t l e

of th is le v e l

in economics u n i t s .

KNOWLEDGE
1.00

Knowledge

1.10

Knowledge o f s p e c i f i c s

1.20

K n o w l e d g e o f w a y s a nd m e a n s o f d e a l i n g
w ith s p e c ific s

1.30

K n o w l e d g e o f t h e u n i v e r s a l s and
a b s t r a c t i o n s in a f i e l d

INTELLECTUAL ABI LI TI ES AND SKILLS
2.00

Comprehension

2.10

Translation

2.20

Interpretation

2.30

Extrapolation

3.00

A pplication

4.00

Analysis

4.10

A nalysis of elements

4.20

A nalysis of r e la tio n s h ip s

4.30

Analysis of o rg an izatio n al p rin c ip le s

55

Evaluation
6.10

Judgments in term s o f i n t e r n a l evidence

6.20

Judgments in terms of e x te r n a l c r i t e r i a

In the chapter e n t i t l e d
U n i t s , " Bl oom e t a l .

"A n aly sis o f Learning

d i s c u s s one t y p e o f a n a l y s i s used to

"determ in e the b e h a v i o r s or l e a r n i n g outcomes r e l a t e d to
e a c h new e l e m e n t o f c o n t e n t . . . .
relation,

statem ent of tr u th ,

G i v e n a new i d e a ,

or o t h e r

i n f o r m a t i o n , " Bl oom

q u e s t i o n s what the s t u d e n t i s exp ected to

learn,

remember,

a n d b e a b l e t o do w i t h t h e s p e c i f i c s u b j e c t m a t t e r i n t r o ­
duced in a l e a r n i n g u n i t (p. 157).
Bl oom e t a l .

c l a s s i f i e s new e l e m e n t s o f s u b j e c t

m a t t e r o r c o n t e n t a c c o r d i n g t o some o f t h e c a t e g o r i e s i n t h e
1956 Taxonomy o f

Educational O bjectives.

"These c l a s s i f i c a ­

tio n s attem pt to

define a hierarchy of l e v e l s of behavior

t h a t r e l a t e t o t h e d i f f i c u l t y and c o m p l e x i t y l e v e l s o f t h e
l e a r n i n g p r o c e s s " (p.

15 7) .

The f o l l o w i n g a r e t h e l e v e l s .

LEVELS/CLASSIFICATIONS/CATEGORIES OF THE LEARNING
PROCESS ( p p . 1 5 8 - 9 )
Knowledge o f t e r m s
Kn o w l e d g e o f f a c t s
Kn o w l e d g e o f r u l e s a n d p r i n c i p l e s
S k i l l i n u s i n g p r o c e s s e s and p r o c e d u r e s
(correctly)
A bility

t o make t r a n s l a t i o n s

A bility

t o make a p p l i c a t i o n

56
B l o o m e t a l . e x p l a i n s why t h e " S k i l l i n u s i n g p r o ­
c e s s e s and p r o c e d u r e s ” c a t e g o r y i s n o t i n c l u d e d

in the

o r i g i n a l Taxonomy o f E d u c a t i o n a l O b j e c t i v e s .
We f o u n d , a f t e r i n s p e c t i n g a number o f c o u r s e s a n d
e s p e c i a l l y some o f t h e n e w e r c u r r i c u l u m m a t e r i a l s , t h a t
s t u d e n t s a r e f r e q u e n t l y e x p e c t e d t o be a b l e t o use
c e r t a i n p r o c e d u r e s and o p e r a t i o n s a c c u r a t e l y and
rapidly.
Quite f r e q u e n tly th e se a re p a r t i c u l a r s te p s in
a p r o c e s s which th e s t u d e n t s l e a r n in th e a p p r o p r i a t e
sequence.
I t i s sometimes p o s s i b l e fo r s t u d e n t s to
l e a r n a p r o c e s s b e f o r e t h e y h a v e a n a me o r r u l e t o i d e n ­
t i f y i t — f o r e x a m p l e , t h e y may b e a b l e t o s p e a k
c o r r e c t l y b e f o r e t h e y h a v e g r a m m a t i c a l r u l e s ( p . 1 58 ) .
Ha rv ey and H o r to n (1977) s t a t e a b o u t c o g n i t i v e e n t r y
behaviors:
learning.

"All

l e a r n i n g t a s k s a r e b u i l t o n some p r e v i o u s

The s c h o o l c u r r i c u l u m a s s u m e s p r e r e q u i s i t e k n o w l ­

e d g e a n d s k i l l s b e f o r e new l e a r n i n g t a s k s a r e u n d e r t a k e n "
(p.

190).

They a d d :

"The r e s e a r c h by Bl o om a n d h i s s t u d e n t s s u g g e s t s
t h a t l e a r n i n g a c h i e v e m e n t i s l a r g e l y d e t e r m i n e d by t h e
e x t e n t to which s t u d e n t s p o s s e s s th e n e c e s s a r y c o g n i t i v e
entry behaviors a p p lic a b le to subsequent le a rn in g tasks"
(p. 190).

CHAPTER 3
DESIGN OF THE RESEARCH AND PROCEDURES USED
The r e s e a r c h d e s i g n and p r o c e d u r e s o f t h i s
described

in t h i s c h a p te r.

population, population
data

instrum ents,

study are

Five elem ents are discussed:

s e le c tio n , gathering the data,

the

and a n a l y s i s o f t h e d a t a .

The p u r p o s e o f t h i s

s t u d y wa s t o p r o v i d e i n t e r e s t e d

p r o f e s s i o n a l s w i t h i n f o r m a t i o n a b o u t t h e b a s i c economic
understanding of se le c te d
dents.

Michigan b u s i n e s s e d u c a t i o n s t u ­

Data were a c q u i r e d a b o u t t h e

s tu d e n t s demographic

p r o f i l e s a nd f r o m a n e c o n o m i c l i t e r a c y
The d e s c r i p t i v e m e t h o d w a s u s e d .
(1966),

"descriptive

test.
A c c o r d i n g t o Good

stu d ie s gather evidence about c u rren t

c o n d i t i o n s w ith a f o r w a r d - l o o k i n g frame o f r e f e r e n c e "
( p.

172) .

This d e s c r i p t i v e

s t u d y p r o v i d e s d a t a on "what i s "

i n t e r m s o f t h e i n f o r m a t i o n d e r i v e d fro m t h e t e s t and demo­
graphic

questionnaires.

Population
The s t u d y p o p u l a t i o n c o n s i s t e d o f 1 , 5 0 6 s e c o n d a r y
s c h o o l s t u d e n t s who w e r e e n r o l l e d i n b u s i n e s s c l a s s e s t a u g h t
by p a r t i c i p a t i n g V o c a t i o n a l O f f i c e B l o c k (VOB) p r o j e c t
teachers.

The p o p u l a t i o n w a s c o m p r i s e d o f t e n t h ,

57

eleventh,

58
and t w e l f t h g r a d e s t u d e n t s and r e p r e s e n t e d
located

53 s c h o o l s

in lower Michigan.
Many b u s i n e s s e d u c a t i o n c l a s s e s a r e a r r a n g e d o n a

r o t a t i o n b a s i s w i t h v a r y i n g t i m e p e r i o d s f o r a c t i v i t i e s and
competency a s sig n m e n ts .
all

T e a c h e r s c o o p e r a t e mor e r e a d i l y

if

th e s t u d e n t s in a c l a s s can p a r t i c i p a t e becau se the

rotation

arrangem ent i s t h u s n o t s e v e r e l y u p s e t or changed.

Th e p a t t e r n w a s f a v o r a b l e f o r t h i s s t u d y i n t h a t a l l o f t h e
s t u d e n t s i n t h e c l a s s on t h e day o f t h e t e s t c o n s t i t u t e d t h e
population.

Thus t h e p o p u l a t i o n r e p r e s e n t e d a c e n s u s r a t h e r

than a sample.

Population Selection
S tu d e n t p a r t i c i p a n t s were s e l e c t e d becau se t h e i r
t e a c h e r s w e r e i n v o l v e d i n t h e V o c a t i o n a l O f f i c e B l o c k (VOB)
project.

The c h o i c e o f p o p u l a t i o n w a s a c o n s i d e r a t i o n

determining the e x te n t of response.
in-service

in

The VOB t e a c h e r s a t t e n d

s e s s i o n s , and h i g h r e t u r n s wer e e x p e c t e d b e c a u s e

o f a n t i c i p a t e d c o o p e r a t i o n i n a d m i n i s t e r i n g a nd r e t u r n i n g
the data

i n s t r u m e n t s by a s p e c i f i e d

the stu d en ts taking

date.

t h e t e s t was a t r i s k ,

C o o p e r a t i o n by
however,

in th a t

t h e i r w i l l i n g n e s s t o p a r t i c i p a t e w a s unknown.
The s t u d e n t s a t t e n d e d s c h o o l s r e c e i v i n g v o c a t i o n a l
reimbursement for a t
tion

l e a s t one o f t h e

(0E) c o d e p r o g r a m s .

T h i s c o d e wa s s u b s e q u e n t l y c h a n g e d

to C l a s s i f i c a t i o n of I n s t r u c t i o n a l
ing for

14.0000 O f f i c e Educa­

P r o g r a m s ( C I P ) 07.

Fund­

t h e s e p r o g r a m s wa s r e c e i v e d f r o m t h e V o c a t i o n a l -

59
Technical Education S e rv ic e ,
tion.

Michigan Department o f Educa­

The s c h o o l s ' e l i g i b i l i t y

wa s c o n f i r m e d f r o m t h e

1979-

1980 R e i m b u r s a b l e V o c a t i o n a l E d u c a t i o n c o m p u t e r p r i n t o u t
between pages 292-322,

and p a g e s 340-401.

The c l a s s i f i c a t i o n o f s c h o o l

s i z e wa s o b t a i n e d

from

t h e M i c h i g a n Hi g h S c h o o l A t h l e t i c A s s o c i a t i o n b a s e d on i t s
January,

1981, l i s t i n g

a n d wa s a s f o l l o w s :

e n r o l l m e n t o f 1,344 o r more;

C l a s s B,

C l a s s A, s t u d e n t

student enrollm ent

b e t w e e n 676 a n d 1 , 3 4 3 ; a n d C l a s s C, s t u d e n t e n r o l l m e n t o f
349-675.

C l a s s D s c h o o l s were n o t p a r t o f t h i s

study be­

c a u s e t h e r e w e r e no VOB t e a c h e r s i n s c h o o l s w i t h f e w e r
349

than

students.
G a t h e r i n g . t h e _ - Da t a
A l e t t e r w a s m a i l e d on A p r i l 12, 1 9 8 1 , t o e a c h o f

t h e 98 M i c h i g a n S t a t e U n i v e r s i t y V o c a t i o n a l O f f i c e B l o c k
(VOB) p r o j e c t

teachers

( A p p e n d i x A).

th a t the

teachers' adm inister

Literacy

(TEL) t o t h e i r

The l e t t e r

requested

a 4 0 - m i n u t e T e s t o f E c o n o mi c

classes.

A stamped,

addressed r e ­

s p o n s e c a r d was e n c l o s e d on w h ic h t o i n d i c a t e t h e number o f
s tu d e n ts in the c l a s s .
on A p r i l

20,

1 981,

A second l e t t e r

and c a r d were m a i l e d

t o t h o s e who d i d n o t r e s p o n d .

P a c k e ts were p re p a re d f o r d i s t r i b u t i o n
t e a c h e r wh o s e s t u d e n t s c o u l d p a r t i c i p a t e .
tained a cover l e t t e r ,
tionnaire

sheet,

struction

sheet for

instructions,

Ea c h p a c k e t c o n ­

teacher survey ques­

student survey q u e s tio n n a ire
the t e s t ,

t o e a c h VOB

te s t booklets,

sheets,
score

in­

sheets,

60
number 2 p e n c i l s f o r e a c h r e s p o n d e n t ,
dressed re tu rn envelope.

and a s tam pe d, a d ­

I n a d d i t i o n , a t e l e p h o n e number

wa s p r o v i d e d f o r q u e s t i o n s o r c o m m e n t s .
m a i l e d f i r s t - c l a s s on A p r i l 28,

The p a c k e t s w e r e

1981, t o p a r t i c i p a t i n g

teach er s.
The t e s t s w e r e a d m i n i s t e r e d b e t w e e n May 7 ,
June

10,

1981.

instrum ents.

Each p a r t i c i p a t i n g

1 9 8 1 , a nd

s t u d e n t c o m p l e t e d two

The f i r s t w a s a s h e e t o f e i g h t q u e s t i o n s

seeking demographic in fo rm a tio n .

The s e c o n d w a s t h e T e s t

of Eoonomic L i t e r a c y , w h i c h i s d e s i g n e d t o a s s e s s s t u d e n t
u n d e r s t a n d i n g o f t h e b a s i c economic c o n c e p t s .

The t e a c h e r s

a d m i n i s t e r i n g th e t e s t a l s o com pleted a q u e s t i o n n a i r e which
o b t a i n e d d e m o g r a p h i c a nd r e l a t e d

inform ation about the

respondents.
On J u n e 8 a n d J u n e 10 f o l l o w - u p t e l e p h o n e c a l l s w e r e
made t o t e a c h e r s who had n o t r e t u r n e d

the packets.

A VOB

te a c h e r or c o l l e a g u e monitored the c l a s s during the t e s t .
A ll

s t u d e n t s w e r e t r e a t e d t h e same a s t o i n s t r u c t i o n s a n d

time l i m i t s ,

in accordance with the

instruction

sheet

( A p p e n d i x B) .
The D a t a G a t h e r i n g I n s t r u m e n t s
T h i s s t u d y was c o n d u c t e d w i t h a t e s t i n s t r u m e n t
designed

to measure

secondary

ing o f b a s i c economic c o n c e p t s .
o f E c o n o mi c L i t e r a c y

(TEL),

students' present understand­
This instrum ent,

is included

the Test

i n A p p e n d i x B.

TEL w a s a d m i n i s t e r e d by v o c a t i o n a l b u s i n e s s e d u c a t i o n

The

61
te a c h e r s to b u s in e s s ed u catio n s tu d e n ts e n r o l l e d
secondary-level classes.

in

The TEL i n s t r u m e n t wa s n o t

altered.
This study a l s o

i n c l u d e d two q u e s t i o n n a i r e s f o r t h e

purpose o f g a th e r in g demographic in fo rm a tio n about the r e ­
spondents.

One w a s d e s i g n e d f o r t h e s t u d e n t s t o c o m p l e t e ,

the other designed for
questionnaire

the a d m in is tr a to rs of the t e s t .

The

i t e m s were c a r e f u l l y c o n s t r u c t e d and t h e n

r e v i s e d a f t e r comments f o r m o d i f i c a t i o n s and i m p r o v e m e n t s
were r e c e i v e d

from a j u r y o f e x p e r t s .

The q u e s t i o n n a i r e t o t h e a d m i n i s t r a t o r o f
the q uestionnaire to the

s t u d e n t s t a k i n g t h e TEL, a n d t h e

TEL w e r e t h e i n s t r u m e n t s u s e d t o g a t h e r a l l
research

t h e TEL,

d e m o g r a p h i c and

data.

The Q u e s t i o n n a i r e t o t h e T e a c h e r s
Administering the Test
The q u e s t i o n n a i r e
e ight questions.
l ow p a p e r
on w h i t e

T h i s q u e s t i o n n a i r e wa s d u p l i c a t e d on y e l ­

to d i s t i n g u i s h
paper

sent to the te a c h e r s c o n s is te d of

(Appendix

Questions
name a nd s c h o o l ,

it

from th e s t u d e n t s ’ q u e s t i o n n a i r e

B) .

1 and 2 r e q u e s t e d ea c h a d m i n i s t r a t o r ' s
wh ich r e m a i n e d anonymous f o r

this

study.

Q u e s tio n 3 i n q u i r e d w hether th e a d m i n i s t r a t o r s would
like

to re c e iv e

the

scores of th e ir

students.

Question 4 asked whether the s tu d e n ts being t e s te d
were i n a v o c a t i o n a l l y r e i m b u r s e d c l a s s .

62
Q u e s t i o n s 5 and 6 s o l i c i t e d

inform ation as to

w h e th e r t h e s c h o o l r e q u i r e d or o f f e r e d an econom ic s c o u r s e .
Question 7 sought inform ation about c l a s s size and/
or e n r o l l m e n t in th e s ch o o l or v o c a t i o n a l a r e a c e n t e r .
Question 8 asked i f
a t t e n d economic e d u c a t i o n

the i n s t r u c t o r s would l i k e to

in-service

programs.

The Q u e s t i o n n a i r e t o t h e S t u d e n t s
The s t u d e n t q u e s t i o n n a i r e s c o n s i s t e d o f e i g h t q u e s ­
tions

(Appendix

B).

Question 1 asked the age,

grade,

and sex o f t h e

student.
Question 2 p e r t a i n e d to th e economics course back­
grounds of the stu d en t.

An e c o n o m i c s c o u r s e wa s d e f i n e d a s

"a c o u r s e w i t h a m a j o r f o c u s on e c o n o m i c s a t

least

s i x weeks

i n l e n g t h and t a k e n i n g r a d e s 8, 9, 10, 11, o r 12."
Q u e s t i o n 3 as k ed w h e t h e r t h e s t u d e n t would be " t a k ­
i n g a c o u r s e e n t i t l e d ECONOMICS b e f o r e h i g h s c h o o l g r a d u a ­
tion."
Question M e l i c i t e d
s t u d e n t had e v e r
keting,

in fo rm atio n a s to whether the

ta k e n c o u r s e s in th e b a s i c b u s i n e s s , mar­

a n d / o r consumer a r e a s .

provided for

Exa mpl es o f c o u r s e s were

each a re a .

Q u e s t i o n 5 a nd 6 p e r t a i n e d

to the r e s p o n d e n t's

f a m i l y b a c k g r o u n d , i n c l u d i n g t h e e d u c a t i o n a l l e v e l and
occupational area of the f a th e r ,
Question 7 s o l i c i t e d

mother,

and/or guardian.

inform ation about the approxi­

m a t e a n n u a l i n c o me o f t h e r e s p o n d e n t ' s f a m i l y .

63
Question 8 re q u e ste d

th e z i p code o f th e r e s p o n d ­

e n t ’ s home m a i l i n g a d d r e s s f o r

geographical

inform ation.

Xhe.-Igfi.t. Instrum ent
The T e s t o f E c o n o m i c L i t e r a c y
measure c o g n i t i v e a c h ie v e m e n t.

(TEL) i s d e s i g n e d t o

The i n s t r u m e n t ,

copyrighted

by t h e J o i n t C o u n c i l on E c o n o mi c E d u c a t i o n i n 1 9 7 9 , wa s t h e
o u t g r o w t h o f t h e r e v i s e d T e s t o f Economic U n d e r s t a n d i n g
(TEU).

The TEU wa s d e v e l o p e d i n

1964 b e c a u s e o f a n e e d f o r

an a p p r o p r i a t e i n s t r u m e n t t o m easure t h e economic kn o w le d g e
of high school

students.

1976 w i t h t r i a l

fifth

T h i s c o m m i t t e e wa s c o m p o s e d o f e c o n o m i c

economists,

trial

and h i g h

school

v e rsio n of the t e s t ,

teachers.

By t h e

po or q u e s t i o n s had be en r e ­

moved,

t h e r e wa s d i s c r i m i n a t i o n p ower i n i n d i v i d u a l

items,

and o v e r a l l r e l i a b i l i t y

In a d d itio n ,

in

a d m i n i s t r a t i o n s a n d r e v i s i o n s by a TEL

Wo r k i n g C o m m i t t e e .
educators,

The u p d a t i n g o f t h e TEU s t a r t e d

test

o f t h e t e s t was e s t a b l i s h e d .

t h e TEL N a t i o n a l A d v i s o r y C o m m i t t e e p r o v i d e d

i t s r e a c t i o n to th e t e s t (S oper,

19 7 9 s p. 2 ) .

Th e TEL h a s t wo f o r m s , T e s t A a n d T e s t B.

Each i s

e i g h t p a g e s l o n g a nd c o n t a i n s 46 m u l t i p l e - c h o i c e i t e m s a l ­
lowing four c h o ic e s per q u e s tio n .

T e s t A was a r b i t r a r i l y

s e l e c t e d f o r t h i s s t u d y a s t h e f o r m s do n o t d i f f e r
significantly.
Norming.
using a nationwide

The TEL wa s nor me d i n May a n d J u n e ,
sample.

A stratified

19 7 7 ,

sampling procedure

wa s u s e d t o a s s u r e r e p r e s e n t a t i o n o f s u b g r o u p s .

S tatistical

d a t a w e r e o b t a i n e d f r o m t h e norm d a t a a n d w e r e u s e d t o j u d g e

64
the t e c h n i c a l adequacy o f the t e s t .

The norm d a t a w e r e

c o l l e c t e d f r o m c l a s s e s i n 92 h i g h s c h o o l s l o c a t e d i n d i f ­
f e r e n t g e o g r a p h i c a l r e g i o n s , a r e a s , and s i z e s o f s c h o o l s
w ith in the United S ta te s .
ability

Although th e re

i s a high prob­

t h a t t h e norming sample c o n t a i n s a random d i s t r i b u ­

tion of students,

no c l a i m wa s made t h a t t h e g r o u p o f 8 , 6 6 0

stu d e n ts te s te d e x a c tly r e p r e s e n ts the stu d e n t p o p u la tio n
(Soper,
found

p.

11 ) .

A dditional

i n Appendix

norming sam ple

statistics

are

C.

V a l i d i t y — C o n t e n t and C o n c u r r e n t .

I t was t h e j u d g ­

m e n t o f t h e me mb e r s o f t h e TEL Wo r k i n g C o m m i t t e e a n d t h e
N a t i o n a l A d v i s o r y Committee t h a t t h e c o n t e n t f i n a l l y a d o p te d
best reflected

the a c t u a l

s t r u c t u r e o f t h e TEL.

The r e l a ­

t i v e s c o r e s o f s t u d e n t s i n t h e n o r m i n g s a m p l e who h a d o r h a d
n o t t a k e n p r e v i o u s e c o n o m i c s i n s t r u c t i o n was t h e c h e c k
o f t h e v a l i d i t y o f any i n d i v i d u a l

test

item s (Soper,

p.

15).

T h e re was a l s o l i m i t e d e v i d e n c e o f c o n c u r r e n t v a l i ­
d i t y because the t e s t c o r r e l a t e d with o th er measures of
achievem ent in economics.

Data were o b t a i n e d

r a te d midwestern high school
t h e t e s t b e f o r e and a f t e r

showing s t u d e n t p e r f o r m a n c e on

economics i n s t r u c t i o n .

m a t i o n and f i g u r e s from a s a m p l e o f
t h a t the s t a t i s t i c a l
.01

level

from a h i g h l y

The i n f o r ­

163 s t u d e n t s i n d i c a t e d

d i f f e r e n c e s were s i g n i f i c a n t beyond th e

of confidence

(Soper,

Test of R e l i a b i l i t y .

p.

15).

The s t a n d a r d e r r o r o f m e a s u r e ­

m e n t was r e g a r d e d a s a n i n d e x o f t h e TEL' s r e l i a b i l i t y

and

a s an e s t i m a t e o f t h e am o u n t o f v a r i a t i o n w h i c h c o u l d be

65
expected

in the t e s t

score.

The s t a n d a r d e r r o r o f m e a s u r e ­

m e n t wa s d e t e r m i n e d d i r e c t l y f r o m t h e r e l i a b i l i t y
c i e n t and t h e s t a n d a r d d e v i a t i o n o f t h e t e s t
b o t h f o r m s o f t h e TEL.
w a s 3 . 0 2 f o r F o r m A.
standard

error

A r a w s c o r e o f 23 o n a t e s t w i t h a

o f m e a s u r e m e n t o f 3*0 i n d i c a t e s t h a t a b o u t 67

f r o m 20 t o 2 6 ,

score l i e s

lies

in a range

i n a r a n g e f r o m 17 t o 2 9 .

The

t e s t f o r r e l i a b i l i t y wa s t h e C r o n b a c h ' s a l p h a ,

w hi ch was .875.

A C r o n b a c h ’s a l p h a

reliable

test

(Soper

Content C a te g o rie s .
t h e TEL w e r e u s e d f o r
test

score

o r t h a t a b o u t 95 p e r c e n t o f t h e t i m e a

other o v e r a ll

perfectly

s c o r e s from

The s t a n d a r d e r r o r o f m e a s u r e m e n t

p e r c e n t o f t h e t i m e a p e r s o n ’s " t r u e "

person's true

coeffi­

this

pp.

of

1. 00 w o u l d i n d i c a t e

13—14) .

The q u e s t i o n s f r o m Form A o f
study.

They w e r e d e s i g n e d t o

the knowledge o f seven d i s t i n c t c o n te n t c a t e g o r i e s .

The c o n t e n t c a t e g o r i e s a r e l i s t e d b e l o w .

Also in clu d ed are

t h e number o f q u e s t i o n s i n e a c h c a t e g o r y a nd t h e p e r c e n t a g e
of the content category
q u e s tio n s in the

items for

the te s t .

T h e r e a r e 46

test.

CONTENT CATEGORY
NAME

NUMBER OF
QUESTIONS

PERCENT

The B a s i c E c o n o mi c P r o b l e m

4

8.7

E c o n o mi c S y s t e m s

6

13.0
30.4

Microeconomics:
Resource
A l l o c a t i o n a n d I n c o me
D istribution
Macroeconomics:
Ec o n o mi c
S t a b i l i t y and Growth

17

37.0

a

66

NUMBER OF
QUESTIONS

CONTENT CATEGORY
NAME

PERCENT

The Wo r l d Economy
)

10.8

2

Ec o n o mi c I n s t i t u t i o n s

)

2

Concepts for E v a lu a tin g
E c o n o mi c A c t i o n s and
Policies
Total

(percentage rounded)

Cognitive Levels.

100.0

46

The TEL q u e s t i o n s c a n a l s o be

b r o k e n down i n t o a f i v e - l e v e l

schema o f c o g n i t i v e t a x o n o m y .

T h i s i s a v a r i a n t o f B e n j a m i n S. B l o o m ' s o r i g i n a l
of

six

levels

or c a t e g o r i e s

(Soper,

p.

3).

taxonomy

The " s y n t h e s i s ”

l e v e l o n o r i g i n a l i t y a n d c r e a t i v i t y wa s o m i t t e d by t h e TEL
Wo r k i n g C o m m i t t e e b e c a u s e i t p r e s u m e d t h a t
s y n t h e s i s wa s c a l l e d
course or u n it.
five

The me mb e r s o f t h e c o m m i t t e e b e l i e v e d

(Soper,

I.
II.
III.
I V.
V.

o r no

f o r in a t y p i c a l h ig h s ch o o l economics

l e a r n i n g l e v e l s were a d e q u a t e .

l e v e l s are

little

the

The f i v e c o g n i t i v e

p. 4 ) :

Kn o w l e d g e
Comprehension
A pplication
A nalysis
Evaluation

Cog n i t i v e L e v e l s Ma t c h e d W i t h C o n t e n t C a t e g o r i e s .
The TEL q u e s t i o n s w e r e w r i t t e n t o m a t c h t h e c o g n i t i v e

levels

w i t h t h e economic c o n t e n t c a t e g o r i e s .

The f o l l o w i n g p a g e s

list

the f iv e c o g n itiv e

in d e t a i l

the c o n ten t c a te g o r ie s ,

67
levels,

a n d a m a t r i x , p a g e 7 0 , w h i c h b r e a k s down e a c h t e s t

i t e m by c o n t e n t c a t e g o r y a n d c o g n i t i v e l e v e l .
The TEL c o n t a i n s

seven economic c o n t e n t c a t e g o r i e s .

These c o n c e p t s were an i n t e g r a l p a r t o f t h e M aster C u r r i c u ­
lum G u i d e i n E c o n o m i c s f o r . t h e

N ation's_S chools._P art_I.

F r a m e w o r k f o r T e a c h i n g Ec o n o m i c s :

Baaig-Cp. Dfi . aptg.

s e v e n economic c o n t e n t c a t e g o r i e s and t h e i r

A

The

subcategories

a r e a s f o l l o w s ( S o p e r , p. 3).
A.

B.

C.

THE BASIC ECONOMIC PROBLEM
1.

E c o n o mi c w a n t s

2.

Productive re so u rc e s

3.

S c a r c i t y and c h o i c e s

4.

O p p o r t u n i t y c o s t s and t r a d e - o f f s

5.

M a r g i n a l i s m and e q u i l i b r i u m

ECONOMIC SYSTEMS
6.

N a t u r e and t y p e s o f economic s y s t e m s

7.

Economic i n c e n t i v e s

8.

S p e c i a l i z a t i o n , c o m p a r a t i v e a d v a n t a g e , and
the d iv is io n of labor

9.

V oluntary exchange

10.

Interdependence

11 .

G o v e r n m e n t i n t e r v e n t i o n a nd r e g u l a t i o n

MICROECONOMICS:
DISTRIBUTION

RESOURCE ALLOCATION AND INCOME

12.

Markets,

s u p p l y a n d demand

1 3.

The p r i c e m e c h a n i s m

14.

C o m p e t i t i o n a nd m a r k e t s t r u c t u r e

68
15 .
16 .

D.

E.

"Market f a i l u r e s " :
information co sts,
resource im m obility, e x t e r n a l i t i e s ,

etc.

I n c o me d i s t r i b u t i o n a n d g o v e r n m e n t
redistribution

MACROECONOMICS: . ECONOMIC STABILITY AND GROWTH
1 7.

A g g r e g a t e s u p p l y and p r o d u c t i v e c a p a c i t y

1 8.

A g g r e g a t e demand u n e m p l o y m e n t a n d i n f l a t i o n

19.

R e a l a n d money i n c o m e ;

20.

Money a n d m o n e t a r y p o l i c y

21.

F iscal policy:
transfers

22.

Economic g r o w t h

23.

Savings,

taxes,

investm ent,

p ric e le v e l changes

expenditures,

and

and p r o d u c t i v i t y

THE WORLD ECONOMY
24.

I n t e r n a t i o n a l economics

F.

ECONOMIC INSTITUTIONS

G.

CONCEPTS FOR EVALUATING ECONOMIC ACTIONS AND
POLICIES
Economic g o a l s :
freedom, economic e f f i c i e n c y ,
equity, security, price s t a b i l i t y , f u l l
em plo yment, and grow th
T r a d e - o f f s among g o a l s

Following are l i s t e d

th e f i v e c o g n i t i v e l e v e l s used

i n t h e TEL w h i c h w e r e m o d i f i e d f r o m B l o o m ’s s i x - l e v e l
t a x o n o m y ( S o p e r , p. 4 ) .

69
OBJECTIVE

LEVEL
I

EMPHASIS

To show t h a t t he s t u d e n t
knows

r e c o g n i t i o n and r e c a l l —
a b i l i t y to remember f a c ts
in a form c lo s e to th e way
th ey were p resen ted

To show t h a t th e s tu d e n t
u n d erstan d s

g rasp th e meaning and i n te n t
o f in fo rm atio n —a b i l i t y to
t e l l o r t r a n s la te in own
words

To show t h a t th e s tu d e n t
can u se what i s le a rn e d

u se o f in fo rm atio n —a b i l i t y
to a p p ly le a r n in g to new
s it u a t io n s and r e a l - l i f e
circum stances

To show th a t th e s tu d e n t
p e rc e iv e s and oan p ick
o u t th e most im p o rtan t
p o in ts i n m a te ria l
p rese n te d

re a so n in g —a b i l i t y to break
down in fo rm atio n in to com­
ponent p a r ts and to d e te c t
r e la tio n s h ip s o f one p a r t
to an o th er and to th e whole

To show t h a t th e s tu d e n t
can judge and e v a lu a te
id e a s , in fo rm atio n
s o lu tio n s , procedures
and g o a ls

c r i t e r i a or sta n d a rd s fo r
e v a lu a tio n and judgment—
a b i l i t y to make judgments
based on c r i t e r i a o r
stan d a rd s

Knowledge

II
Comprehension
III
A p p lica tio n
IV
A nalysis

V*»
E v a lu atio n

The m a t r i x o n t h e f o l l o w i n g p a g e s o r t s e a c h i t e m o f
Form A o f t h e TEL by c o n t e n t c a t e g o r y a n d c o g n i t i v e

level.

Even th ough an i n d i v i d u a l m ig h t d i s a g r e e w i t h a g i v e n i t e m ,
i t w a s t h e j u d g m e n t o f t h e TEL Wo r k i n g C o m m i t t e e t h a t t h e
c a t e g o r i e s and l e v e l s a d o p t e d b e s t r e f l e c t e d t h e a c t u a l
s t r u c t u r e o f t h e TEL ( S o p e r , p . 3 ) .
Knowledge" and " ( I I )

When c o m b i n e d , t h e " ( I )

Comprehension" l e v e l s r e l a t e

p e r c e n t o f t h e q u e s t i o n s and

the

"(III)

t o 4 7 .8

A pplication,"

"(IV)

A n a l y s i s , " a n d " ( V) E v a l u a t i o n " l e v e l s t o 5 2 .2 p e r c e n t o f
the

questions.

70

A MATRIX TO MATCH THE TEL COGNITIVE LEVELS WITH
CONTENT CATEGORIES BY TEST QUESTION NUMBER

CONTENT CATEGORIES

COGNITIVE LEVELS
I
Knowl­
edge

II

III

IV

V

Compre­
hension

A ppli­
c a tio n

Anal­
y s is

Evalu­
a tio n

The b a s ic economic
problem

0

1, 2

3 , 19

0

0

Economic system s

5

6, 7

8, 9

0

0

10

11, 12
13

14, 15
16, 17
20, 21

22, 18

23, 24

25, 26
30, 31
32

33, 34
35, 36

37

38, 39
27, 28
40, 41

42

0

43

0

0

0

44, 46

0

0

0

0

0

0

0

0

29, 45

10

12

11

8

5

21.7

26.1

23.9

17.4

10.9

M icroeconomics:
Resource a llo c a ­
tio n and income
d is trib u tio n
Macroeconomics:
Economic s t a ­
b i l i t y and
growth
The world economy
Economic
in s titu tio n s
Concepts f o r e v a l ­
u a tin g economic
a c tio n s and
p o lic ie s
T o tal number o f
q u e stio n s
P ercen t

•The t e s t q u e stio n numbers a r e l i s t e d .

The q u e stio n s a re in Appendix B.

71
Hypotheses for Question 7.

The f o l l o w i n g a r e f o r m a l h y p o t h ­

eses for re se a rc h Question 7 addressed
required

in t h i s study,

which

t h e c o m p a r i s o n o f g r o u p means.
1.

Hq :

T h e r e i s no

d i f f e r e n c e between

B, C, a n d s e c o n d a r y a r e a v o c a t i o n a l c e n t e r
how s t u d e n t s w o u l d a n s w e r t e s t
category for
2.

H0 :

T h e r e i s no

3.

q u e s t i o n s from t h e c o n t e n t

"(B)

HQ:

d i f f e r e n c e between

vocational center

how s t u d e n t s w o u l d a n s w e r t e s t
for

schools regarding

" ( A ) The B a s i c E c o n o mi c S y s t e m . "

B, C, a n d s e c o n d a r y a r e a

category

C l a s s A,

Economic

C l a s s A,

schools regarding

q u e s t i o n s from th e c o n t e n t

Systems."

T h e r e i s no

d i f f e r e n c e between

B, C, a n d s e c o n d a r y a r e a v o c a t i o n a l c e n t e r

C l a s s A,

schools regarding

how s t u d e n t s w o u l d a n s w e r t e s t q u e s t i o n s f r o m t h e c o n t e n t
c a t e g o r y f o r "(C) M i c r o e c o n o m i c s :

Resource A l l o c a t i o n

and

I n c o me D i s t r i b u t i o n . "
4.

Hq :

T h e r e i s no d i f f e r e n c e b e t w e e n

B, C, a n d s e c o n d a r y a r e a v o c a t i o n a l c e n t e r

C l a s s A,

schools regarding

how s t u d e n t s w o u l d a n s w e r t e s t q u e s t i o n s f r o m t h e c o n t e n t
c a t e g o r y f o r "(D) M a c r o e c o n o m i c s :

E c o n o mi c S t a b i l i t y

and

Growth."
5.

Hq :

T h e r e i s no d i f f e r e n c e b e t w e e n

B, C, a n d s e c o n d a r y a r e a

vocational center

C l a s s A,

schools regarding

how s t u d e n t s w o u l d a n s w e r t e s t q u e s t i o n s f r o m t h e c o n t e n t
category for
6.
B,

" ( E ) The Wor l d E c o n o m y . "
Hq :

T h e r e i s no d i f f e r e n c e b e t w e e n

C, a n d s e c o n d a r y a r e a v o c a t i o n a l c e n t e r

C l a s s A,

schools regarding

72
how s t u d e n t s w o u l d a n s w e r t e s t q u e s t i o n s f r o m t h e c o n t e n t
category for
7.

" ( F ) Economic I n s t i t u t i o n s . ”
HQ:

T h e r e i s no d i f f e r e n c e

B, C, a n d s e c o n d a r y a r e a

b e t w e e n C l a s s A,

vocational center

schools regarding

how s t u d e n t s w o u l d a n s w e r t e s t q u e s t i o n s f r o m t h e c o n t e n t
category
and

for

"(G) C o n c e p t s f o r E v a l u a t i n g E c o n o mi c A c t i o n s

P o l i c i e s . 11
8.

HQ:

T h e r e i s no d i f f e r e n c e b e t w e e n C l a s s A,

B, C, a n d s e c o n d a r y a r e a

vocational center

schools regarding

how s t u d e n t s w o u l d a n s w e r t e s t q u e s t i o n s f r o m t h e c o g n i t i v e
level

”(I)

Knowledge. "

9.

HQ:

T h e r e i s no d i f f e r e n c e b e t w e e n C l a s s

B, C, a n d s e c o n d a r y a r e a

vocational center

A,

schools regarding

how s t u d e n t s w o u l d a n s w e r t e s t q u e s t i o n s f r o m t h e c o g n i t i v e
level

"(II)
10.

Comprehension."
H0 :

T h e r e i s no d i f f e r e n c e b e t w e e n C l a s s

B, C, a n d s e c o n d a r y a r e a

vocational center

A,

schools regarding

how s t u d e n t s w o u l d a n s w e r t e s t q u e s t i o n s f r o m t h e c o g n i t i v e
level

"(III)
11.

A pplication."
Hq :

T h e r e i s no d i f f e r e n c e b e t w e e n C l a s s

B, C, a n d s e c o n d a r y a r e a v o c a t i o n a l c e n t e r

A,

schools regarding

how s t u d e n t s w o u l d a n s w e r t e s t q u e s t i o n s f r o m t h e c o g n i t i v e
l e v e l "(IV) A n a ly s is ."
12.

HQ:

T h e r e i s no

B, C, a n d s e c o n d a r y a r e a

d i f f e r e n c e between C l a s s

vocational center

A,

schools regarding

how s t u d e n t s w o u l d a n s w e r t e s t q u e s t i o n s f r o m t h e c o g n i t i v e
l e v e l "(V) E v a l u a t i o n . "

73
H^:

For e a c h o f t h e ab ove n u l l h y p o t h e s e s ,

the

a l t e r n a t e h y p o th esis i s t h a t a d iffe re n c e does e x i s t .
A n a l y s i s o f th e Data
When t h e r e s e a r c h d a t a h a d b e e n c o l l e c t e d
turned,

i n f o r m a t i o n was e n t e r e d o n t o t h e M i c h i g a n S t a t e

U n i v e r s i t y Cy b e r 10 c o m p u t i n g s y s t e m ,

verified,

by v a r i o u s s u b r o u t i n e s o f t h e S t a t i s t i c a l
Social

and r e ­

Sciences

and a n a l y z e d

Package f o r th e

( SPSS) .

SPSS i s a F o r t r a n b a s e d p r o g r a m , o r i g i n a l l y d e v e l ­
oped a s t h e r e s u l t o f a g o v e r n m e n t g r a n t ,

which a f f o r d s

researchers a r e la tiv e ly

s o r t i n g and p e r ­

forming s t a t i s t i c a l

s i m p l e means f o r

analysis.

Such t a s k s a s d e t e r m i n i n g

frequency d i s t r i b u t i o n s or computing d e s c r i p t i v e
analyses of variance,
plished auto m atically ,
r e v i e w and c o n s i d e r

statistics,

and p o s t - h o c c o m p a r i s o n s a r e accom­
l e a v i n g r e s e a r c h e r s mo r e t i m e t o

the meaning o f t h e i r

findings.

Frequen­

cy d i s t r i b u t i o n s were u se d t o d e s c r i b e t h e d a t a c o l l e c t e d
for t h i s study.

A n a ly s e s o f v a r i a n c e were used to a n a l y z e
/

t h e d a t a a n d S c h e f f e ' s p o s t - h o c m u l t i p l e c o m p a r i s o n t e s t was
used where s i g n i f i c a n c e was found.

CHAPTER 4
PRESENTATION OF RESEARCH FINDINGS
D escriptive
presented

i n f o r m a t i o n r e s u l t i n g from t h i s study i s

in t h i s c h a p te r.

S elected business education

stu­

d e n t s r e s p o n d e d t o a q u e s t i o n n a i r e w h i c h p r o v i d e d demo­
g r a p h i c d a t a and were g i v e n a t e s t d e s ig n e d to a s s e s s t h e i r
economic know ledge.

A l s o , a q u e s t i o n n a i r e wa s c o m p l e t e d by

t h e t e a c h e r s who a d m i n i s t e r e d
The d a t a

the t e s t .

are presented

i n t wo s e c t i o n s .

The f i r s t

a d d r e s s e s r e s e a r c h q u e s t i o n s one t h r o u g h f o u r and r e p o r t s
d e m o g r a p h ic and r e l a t e d
tionnaires.

i n f o r m a t i o n o b t a i n e d from t h e q u e s ­

The s e c o n d p e r t a i n s t o q u e s t i o n s f i v e

s e v e n a nd p r e s e n t s d e s c r i p t i v e
test

scores.

through

in f o r m a t i o n d e r i v e d from th e

P e r c e n t a g e s o f t o t a l s may b e r o u n d e d .

Re.se,ar.c.h...Que,st iQns-.Oae-Itico.usb^£Q.iini

Demographic and R e l a t e d I n f o r m a t i o n
Demographic i n f o r m a t i o n p r e s e n t e d

in Tables 1

t h r o u g h 12 p r e s e n t d a t a w h i c h h e l p a n s w e r t h e f i r s t
questions of th is
the

study.

questionnaires

Research Question

four

The i n f o r m a t i o n wa s o b t a i n e d f r o m

(Appendix

B).

1

What wa s t h e c o m p o s i t e p r o f i l e o f t h e s t u d e n t s who
were t e s t e d

for

c u r r e n t economic knowledge:
74

sex;

age;

75
grade;

p a r e n t s 1 or

pational

guardians* e d u c a tio n a l

a r e a , and income l e v e l ;

background,

occu­

and c l a s s s i z e o f seco n d ary

school?
Table
the

1 p r e s e n t s d a t a by s e x o f r e s p o n d e n t s .

1,506 r e s p o n d e n t s ,

Males r e p r e s e n te d

1,430 (95.0 p e r c e n t )

were

Among

female.

l e s s than 5 p ercen t of the respondents.
Table

1

Sex o f R e s p o n d e n t s
N=1 , 5 0 6

Sex

Number o f
Respondents

Male
Female
No r e s p o n s e
Total

Percent

74

4.9

1,430

95.0

2

.1

1,506

100.0

T a b l e 2 p r o v i d e s d a t a on t h e ag e d i s t r i b u t i o n o f t h e
respondents.

They r a n g e d f r o m 15 t o 20 y e a r s o f a g e ,

t h o u g h 72 7 o r a l m o s t o n e - h a l f ( 4 8 . 3 p e r c e n t ) w e r e

17 y e a r s

o f a g e , a n d 4 7 8 ( 3 1 . 1 p e r c e n t ) w e r e 18 y e a r s o f a g e .
l e a s t number o f r e s p o n d e n t s f e l l
old

into the

al­

The

15 a n d t h e 2 0 - y e a r

groups.
Table 3 i n d i c a t e s the resp o n d en ts' grade l e v e l .

Mo s t r e s p o n d e n t s 933 o r 62 p e r c e n t ,
grade;

550 ( 3 6 . 5 p e r c e n t ) w e r e i n

were in the t w e l f t h

the e le v e n th

grade.

76
Table 2
Age o f R e s p o n d e n t s
N=1, 5 0 6

Age

Number o f
Respondents

Percent

15

2

.1

16

271

18.0

17

727

48.3

18

468

31.1

19

34

2.3

20

2

.1

No r e s p o n s e

2

.1

1,506

100.0

Total

Table 3
Grade Level o f R e s p o n d e n ts
N=1 , 5 0 6

Grade
Level

Number o f
Respondents

Percent

10

12

.8

11

550

36.5

12

933

62.0

11

.7

1,506

100.0

No r e s p o n s e
Total

77
Educational

l e v e l s a t t a i n e d by t h e r e s p o n d e n t s 1

f a t h e r s o r m a l e g u a r d i a n s a r e shown i n T a b l e 4.
g rad u ates accounted

for

603 ( 4 0 . 0 p e r c e n t ) .

Hi g h s c h o o l

Approximately

29 p e r c e n t h a d l e s s e d u c a t i o n t h a n a h i g h s c h o o l d i p l o m a ,
a n d a p p r o x i m a t e l y 28 p e r c e n t h a d mor e e d u c a t i o n .
Table 4
E d u c atio n a l Level o f Respondents'
F a t h e r s o r Mal e G u a r d i a n s
N=1, 5 0 6

Educational
Level

Number o f
Respondents

Percent

Less than high school
diploma

431

28.6

Hi gh s c h o o l g r a d u a t e

603

40.0

Some c o l l e g e o r
a d d itio n a l education

254

16.9

College degree

164

10.9

54

^.6

1,506

100.0

No r e s p o n s e
Total

Educational

l e v e l s a t t a i n e d by t h e r e s p o n d e n t s '

m o t h e r s o r f e m a l e g u a r d i a n s a r e p r e s e n t e d i n T a b l e 5.
than h a l f ,
ates.

o r 80 5 ( 5 3 . 5 p e r c e n t ) ,

were h i g h

More

school gradu­

A p p r o x i m a t e l y 24 p e r c e n t h a d l e s s e d u c a t i o n t h a n a

high school diploma,
education.

a n d a p p r o x i m a t e l y 21 p e r c e n t h a d mor e

78
Table 5
E du c atio n a l Level o f Respondents'
Mothers or Female G u a r d ia n s
N=1, 5 0 6

Number o f
Respondents

Educational
Level

Percent

Less than high school
diploma

355

23.6

Hi g h s c h o o l g r a d u a t e

805

53.5

Some c o l l e g e o r
a d d itio n al education

219

14.5

College degree

99

6.6

No r e s p o n s e

28

1.9

1,506

100.0

Total

Table 6 r e v e a l s the o c c u p a tio n a l area o f the r e ­
spondents' f a t h e r s or male g u ard ian s.
o p e r a tiv e s accounted
l i s t e d were:
worker,

for

ment,

supervision,

The t h r e e

and a d m i n i s t r a t i o n ;

state,

p o l i c e m e n , FBI a g e n t ,
retired,

and l o c a l

construction

"other" occupa­
(1) manage­

(2) s e l f - e m p l o y m e n t ;

government (firem en,

county worker).

disabled,

or

In the "other"

a r e a s s p e c i f i e d most f r e q u e n t l y were:

and (3) f e d e r a l ,

b y:

percent).

foremen,
Examples

carpenter,

and shop w o r k e r .

c a t e g o r y w e r e 321 ( 2 1 . 3
tional

674 ( 4 4 . 8 p e r c e n t ) .

mechanic, repairm an,

truck d riv e r,

Crafts,

These were f o ll o w e d

computer o p e r a t o r ,

and a c c o u n t a n t .

79
Table 6
O c c u p a t i o n a l Area o f R e s p o n d e n t s '
F a t h e r s o r Mal e G u a r d i a n s
Ns1,506

Number o f
Respondents

C lerical

Percent

00

Occupational
Area

C r a f t s , foremen,
operatives

•

87
674

44.8

54

3.6

7

.5

141

9.4

Sales

79

5.2

Service

46

3.1

321

21.3

97

6.4

1,506

100.0

Farmer s
Homemaker
P r o f e s s i o n a l or
technical

Other
No r e s p o n s e

,

Total

T a b l e 7, w h i c h p e r t a i n s

to th e o c c u p a ti o n o f the

r e s p o n d e n t s ' m others or f e m a le g u a r d i a n s , r e v e a l s
( 34. 1

percent)

fell

into

(20.6 p e r c e n t )

into

the c l e r i c a l

retary,
were:
ing,

typist).

accountant,

t h e homemaker c a t e g o r y a n d 310
category

(bookkeeper,

Some o f t h e " o t h e r " o c c u p a t i o n a l

self-em ployment,
cook,

t h a t 514

listings

management, com put er o p e r a t o r ,
and un em p lo y ed .

sec­

bank­

80
Table 7
O c c u p a t i o n a l Ar e a o f R e s p o n d e n t s '
M othe rs or Female G u a r d i a n s
N=1, 5 0 6

Occupational
Ar e a

Number o f
Respondents

Percent

310

20.6

93

6.2

8

.5

514

34.1

Clerical
C r a f t s , foremen,
operatives
Fa r me r
Homemaker
P r o f e s s i o n a l or
technical

88

OO
•
in

Sales

71

4.7

Service

107

7.1

Other

243

16.1

72

4.8

1,506

100.0

No r e s p o n s e
Total

T a b l e 8, r e l a t i n g
spondent's fam ily,
half

r e v e a l s t h a t 777 o r a p p r o x i m a t e l y o n e -

(51.6 p e r c e n t )

t h o s e who d i d

t o t h e i n c o me l e v e l o f t h e r e ­

of

the

s t u d e n t s m a r k e d "unknown. "

s p e c i f y an amount,

247 ( 1 6 . 4 p e r c e n t )

Among

indi­

c a t e d t h e y p e r c e i v e d t h e f a m i l y i n c o me l e v e l wa s b e t w e e n
$20,000 and $29 ,9 99.

O n l y 65 ( 4 . 3 p e r c e n t )

income l e v e l to be l e s s t h a n $ 1 0 ,0 0 0 a y e a r .

perceived

the

81
Table 8
I n c o me L e v e l o f R e s p o n d e n t s ’ F a m i l y
N=1 , 5 0 6

Course
Area

Number o f
Respondents

Percent

Under $ 1 0 , 0 0 0 a y e a r

65

4.3

$10,000-$19,999

182

12.1

$ 2 0 , 0 0 0 - $ 2 9 f 999

247

16.4

$ 3 0 , 0 0 0 o r mor e

198

1 3. 1

Unknown

777

51.6

37

... 2 . 5

1,506

100.0

No r e s p o n s e
Total

T a b l e 9 p r e s e n t s d a t a on t h e c l a s s i f i c a t i o n o f
schools.

The l a r g e s t number o f r e s p o n d e n t s a t t e n d e d C l a s s A

schools:

713 (47.3 p e r c e n t ) w en t t o a s c h o o l w i t h an e n ­

ro llm en t of

1 , 3 4 4 o r mor e s t u d e n t s .

C la s s B sch o o ls, with

a n e n r o l l m e n t o f b e t w e e n 676 a n d 1 , 3 4 3 s t u d e n t s , a c c o u n t e d
for

148 ( 9 . 8 p e r c e n t ) .

C lass C schools,

o f b e t w e e n 349 a n d 6 7 5 s t u d e n t s ,
percent).

w ith an e n r o l l m e n t

accounted

for

348 ( 23. 1

T h e r e w e r e 297 ( 1 9 . 7 p e r c e n t ) r e s p o n d e n t s who

attended area v o catio n al education cen ters (vocational
training

facilities).

These c e n t e r s draw s t u d e n t s from

C l a s s A, B, C, a n d D h i g h s c h o o l s , b u t C l a s s D s c h o o l s w e r e
n o t examined

in t h i s

study.

82
Table 9
C l a s s if ic a tio n of Schools
N=1, 5 0 6

C lassification
o f School

Number o f
Respondents

Percent

713

47.3

Class B (676-1,343)

148

9.8

C lass C (349-675)

348

23.1

C l a s s D (348 or l e s s )

000

Area v o c a t i o n a l e d u c a t i o n
centers (includes a ll
school siz e s)

297

19.7

1,506

100.0

Total

o
•
o

C lass A (1,344+)

To s u m m a r i z e t h e d a t a o b t a i n e d f r o m Q u e s t i o n
m a j o r i t y o f th e s t u d e n t s were f e m a l e s e n r o l l e d
e l e v e n t h or t w e l f t h g rade.

More o f t h e

(or

(or

guardians)

than f a t h e r s

1,

a

in the

s tu d e n ts ’ mothers

g u a r d i a n s ) had g r a d u a t e d

f r o m h i g h s c h o o l ; among t h e p a r e n t s who h a d mor e e d u c a t i o n
than a high school diploma,
achieved

this

status.

mor e f a t h e r s t h a n m o t h e r s had

Two o r t h r e e o u t o f e v e r y t e n p a r e n t s

had c o l l e g e o r a d d i t i o n a l e d u c a t i o n beyond h i g h s c h o o l .
o c c u p a t i o n a l a r e a s f o r most f a t h e r s were " c r a f t s ,
o p e r a t i v e s ; ” the

"other” category

self-employment,

government."

included

The

foremen,

"management,

M o t h e r s w e r e f r o m t h e "home­

makers" and " c l e r i c a l " c l a s s i f i c a t i o n s .

A m ajority of stu­

d e n t s c o u l d n o t g i v e a f a m i l y income f i g u r e .

83

Reseanab ,Questio.a-2
What i s t h e c o m p o s i t e p r o f i l e o f t h e s t u d e n t s who
were t e s t e d i n t e r m s o f a p r e v i o u s e co n o m ics c o u r s e a n d / o r
r e la te d courses?
business,

marketing,

Table
dents

Examples o f r e l a t e d c o u r s e s a r e b a s ic
and co ns um er .

10 s ho ws t h e number a n d p e r c e n t a g e o f r e s p o n ­

who h a d t a k e n a n e c o n o m i c s c o u r s e .

In the

student

q u e s t i o n n a i r e t h e f o l l o w i n g d e f i n i t i o n was g i v e n :

"An ECO­

NOMICS c o u r s e i s a c o u r s e w i t h a m a j o r f o c u s o n e c o n o m i c s a t
least
or

s i x w e e k s i n l e n g t h a n d t a k e n i n g r a d e s 8 , 9» 10,

12."

cated

Among t h e

1,506

students,

437 ( 2 9 . 0 p e r c e n t )

11,

indi­

t h e y had t a k e n an e c o n o m i c s c o u r s e .
In a d d itio n

the stu d en ts,

T a b l e 10 i n c l u d e s d a t a on t h r e e r e l a t e d a r e a s :

basic business,
areas,

to th e economics c o u rse background o f

m arketing,

with v a rio u s t i t l e s ,

and co ns ume r.

p r o v i d e economic u n i t s or i n t e ­

g r a t e economic c o n c e p t s to p r o v i d e
standing

of the

taken r e l a t e d

U.S. e c o n o m i c

courses,

business course,
course,

and

These c o u r s e

s t u d e n t s w i t h an u n d e r ­

system.

Among t h o s e who had

874 ( 5 8 . 0 p e r c e n t ) h a d t a k e n a b a s i c

272 ( 18. 1 p e r c e n t )

had t a k e n a consumer

133 ( 8 . 8 p e r c e n t ) h a d t a k e n a m a r k e t i n g

course.

S i n c e s t u d e n t s may h a v e t a k e n no n e o r a n y c o m b i n a t i o n o f
these courses,
total

th e p e r c e n t a g e column i n T a b le

one hundred.

10 d o e s n o t

84
Table 10
C o u r s e s Ta k e n By R e s p o n d e n t s Whi ch
I n c l u d e Ec o n o mi c C o n c e p t s
N=1, 5 0 6

Cour se

Number o f
Respondents

Percent

Economics (Taken)
Economics ( A n t i c i p a t e
taking)

437
183

29.0
12.2

Basic Business
Marketing

874
133

58.0
8.8

Consumer

272

18.1

Economics:

R e l a t e d Economics C o u r s e s :

• S t u d e n t s may h a v e t a k e n no n e o r a n y c o m b i n a t i o n o f c o u r s e s .
Research Question 3
I s an e c o n o m ic s c o u r s e o f f e r e d and r e q u i r e d a t t h e
s c h o o l s where th e

s t u d e n t s were t e s t e d ?

As shown i n T a b l e
are represented
schools,

in t h i s

study.

21 (81 p e r c e n t ) o f f e r

(3 p e r c e n t ) r e q u i r e s i t .
percent) o ffer
requires it.
offer
it.

11, 45 C l a s s A, B, a n d C s c h o o l s
Among t h e 26 C l a s s A
an e c o n o m ic s co u r se,

Of t h e 7 C l a s s B s c h o o l s ,

an econom ics c o u r s e ,

and t h r e e

12 C l a s s C s c h o o l s
(25 p e r c e n t ) r e q u i r e

C lass D schools are not represented

Eight secondary area
of th is

6 (86

a nd o n e ( 14 p e r c e n t )

Four (33 p e r c e n t ) o f t h e

an e co n o m ic s c o u r s e ,

and one

in t h i s

study.

v o c a t i o n a l e d u c a t i o n c e n t e r s were p a r t

s t u d y b u t do n o t o f f e r

economics courses.

85
Table 11
Number a n d P e r c e n t a g e o f S c h o o l s By
C l a s s i f i c a t i o n Whi ch O f f e r a n d
R e q u i r e an E c o n o m i c s C o u r s e
N=53

C lassification
of Schools

Number
of
Schools

Economics Course
Offered
Number
Percent

Economics Course
Reauired
Number
Percent

Class A

26

21

81

1

3

Class B

7

6

86

1

14

Class C

12

4

33

3

25

Class D

-

Area v o c a t i o n a l
education
center s

-

-

-

-

pp

8

Research Question 4
To w h a t e x t e n t do t h e t e a c h e r s e x p r e s s a n i n t e r e s t
in a tte n d in g workshops,

seminars,

or i n - s e r v i c e

programs to

l e a r n mor e a b o u t m e t h o d s o f i n t e g r a t i n g e c o n o m i c c o n c e p t s
into th e ir curriculum?
T a b l e 12 r e v e a l s t h a t 23 ( 4 3 p e r c e n t ) o f t h e 53
t e a c h e r s who a d m i n i s t e r e d t h e t e s t e x p r e s s e d a n i n t e r e s t
such a c t i v i t i e s f o r c r e d i t or n o n c r e d i t ,
one-third

or

17 ( 34 p e r c e n t ) r e s p o n d e d

in

and a p p r o x i m a t e l y

th e y were undecided.

86

Table

12

Teacher s ’ Expressed I n t e r e s t in A tten d in g
Workshops, S em in ars, or I n - s e r v i c e S e s s i o n s

Response

Number o f
Teacher s

Percent

Interested

23

43

No t i n t e r e s t e d

11

21

Undecided

17

32

No r e s p o n s e

_£

__ it

Total

53

100

R e s e a r c h Q u e s t i o n s F i v e T h r o u gh S e v e n :
Descriptive
Carinatlan
R e s e a r c h Q u e s t i o n s 5 , 6, a n d 7 r e l a t e

to the s t u ­

d e n t s ’ u n d e r s t a n d i n g o f b a s i c economic c o n c e p t s ,

and t h e

d a ta a r e most u s e f u l l y i n t e r p r e t e d d e s c r i p t i v e l y .
n omi c c o n c e p t s a r e b r o k e n down i n t o

The e c o ­

s e v e n c a t e g o r i e s and

f i v e c o g n i t i v e l e v e l s ( A p p e n d i c e s D a n d E).

S c o r e s were

c o m p i l e d f r o m t h e T e s t o f E c o n o mi c L i t e r a c y

t a k e n by t h e

1,506

accompanying

s t u d e n t s (Appendix

B).

The n a r r a t i v e

T a b l e s 13 t h r o u g h 28 e x a m i n e s a n d a n a l y z e s t h e a p p l i c a b l e
data

i n an e f f o r t to a s s e s s t h e

s tu d e n ts ' knowledge.

The

t a b l e s i n c l u d e b o t h t h e number a n d t h e p e r c e n t a g e o f c o r r e c t
r e s p o n s e s by t h e

students.

The q u e s t i o n s a n d a n s w e r s a r e

p r e s e n t e d by s u b c a t e g o r i e s i n c h r o n o l o g i c a l
narrative descriptions state
sponses.

order.

The

the percentage of c o r r e c t r e ­

The s t u d e n t s c h o s e a n a n s w e r t o e a c h q u e s t i o n f r o m

87
the b e st of four choices

( A p p e n d i x B).

or resp o n se to each q u e s tio n

The c o r r e c t a n s w e r

i s r e v e a l e d in t h i s study with

p e r m i s s i o n o f t h e J o i n t C o u n c i l on E c o n o m i c E d u c a t i o n .
The TEL wa s u s e d t o m e a s u r e t h e
m e n t on two d i s t i n c t d i m e n s i o n s :

understanding of concepts

and a t t a i n m e n t o f c o g n i t i v e l e v e l s .
age o f ite m s c o r r e c t l y

students' achieve­

For each,

the p ercen t­

a n s w e r e d wa s u s e d a s t h e d e p e n d e n t

measure.

Re.se.ac.gti, Quest io,n..S
Whi ch o f t h e

s e v e n c o n t e n t a r e a s do s t u d e n t s u n d e r ­

s t a n d t h e m o st and t h e l e a s t a s e v i d e n c e d by t h e i r s c o r e s
f r o m t h e T e s t o f E c o n o mi c L i t e r a c y ?
categories

are:

A.

The B a s i c E c o n o mi c P r o b l e m

B.

E c o n o mi c S y s t e m s

C.

Microeconomics:
D istribution

R e s o u r c e A l l o c a t i o n a n d I n c o me

D.

Macroeconomics:

E c o n o mi c S t a b i l i t y

E.

The Wo r l d Economy

F.

Economic I n s t i t u t i o n s

G.

C o n c e p t s f o r E v a l u a t i n g E c o n o mi c A c t i o n s a n d
Policies

Table
the

The s e v e n c o n t e n t

a n d G r o wt h

13 s u m m a r i z e s s t u d e n t a c h i e v e m e n t i n e a c h o f

s e v e n c o n t e n t c a t e g o r i e s m e a s u r e d i n t h e TEL.

category

in which s t u d e n t s c o r r e c t l y answered th e h i g h e s t

p e r c e n t a g e o f q u e s t i o n s w a s "(B) E c o n o mi c S y s t e m s . "
half

The

On e -

(50.0 p e r c e n t ) o f t h e r e s p o n s e s t o q u e s t i o n s from t h i s

c a t e g o r y were c o r r e c t .

The c a t e g o r y f o r w h i c h t h e

students

88
c o r r e c t l y a n s w e r e d t h e l o w e s t p e r c e n t a g e o f q u e s t i o n s wa s
"(G) C o n c e p t s f o r

Evaluating

E c o n o mi c A c t i o n s a n d P o l i c i e s . "

On ly 20.9 p e r c e n t o f t h e q u e s t i o n s from t h i s c a t e g o r y were
correctly

answered.

Although

it

i s im portant to ad d re ss the s tu d e n t s ’

achievement in the o th er f i v e c a te g o r ie s ,
stressed

t h a t the f i r s t

it

s h o u l d be

four c a t e g o r i e s in c lu d e concepts "of

fundamental importance because they p rovide a b a s i s for
u n d e r s t a n d i n g and u s i n g
p. 7 ) .

Within th e se

r e c t l y answered th e

the o th er

first

four

c o n c e p ts " (Hansen,

categories,

197 7 ,

students cor­

low est p ercen tag e o f q u e s tio n s in
Table

13

P ercentage o f C o rre c t Responses to Q uestion s in the
T e s t o f ■Economic L i t e r a c y R e l a t e d t o t h e
S e v e n Ec o n o mi c C o n t e n t C a t e g o r i e s
N=1 , 5 0 6

C a t e g o r y L e t t e r and
Content C ate g o rie s

Percent of
C o rrect Responses

B

E c o n o mi c S y s t e m s

50.0

C

Microeconomics:
Resource A llo c a tio n
a nd I n c o m e D i s t r i b u t i o n

40.4

A

The B a s i c E c o n o mi c P r o b l e m

34.4

D

Macroeconomics:
a n d Gr o wt h

33.5

F

E c o n o mi c I n s t i t u t i o n s

27.9

E

The Wo r l d Economy

24.5

G

C o n c e p t s f o r E v a l u a t i n g Ec o n o mi c
A c t i o n s and P o l i c i e s

20.9

Ec o n o mi c S t a b i l i t y

89
"(D)

Macroeconomics:

E c o n o mi c S t a b i l i t y

Approximately o n e - th ir d
correct

in t h i s
Table

a nd G r o w t h . ”

(33.5 p e r c e n t ) o f t h e r e s p o n s e s were

category.

13» o n t h e p r e v i o u s p a g e ,

s h o ws t h e p e r c e n t a g e

o f c o r r e c t r e s p o n s e s by s t u d e n t s i n e a c h o f t h e s e v e n c o n ­
tent categories.
list all

Tables

Ea c h t a b l e

c o r r e c t responses to

g i v e s t h e number a n d p e r c e n t a g e o f
the

s p e c i f i c q u e s tio n s w ith in each of

seven co ntent c a te g o rie s .
Table

14 s h o ws t h e number a n d p e r c e n t a g e o f c o r r e c t

r e s p o n s e s by s t u d e n t s t o q u e s t i o n s r e l a t i n g
B a s i c Economic P r o b l e m ” c o n t e n t c a t e g o r y .
gory,

t o "(A) The
Within t h i s c a t e ­

t h e h i g h e s t p e r c e n t a g e o f c o r r e c t r e s p o n s e s (77.6

p e r c e n t ) wa s f o r Q u e s t i o n
brium" su b c a te g o ry .
sources" subcategory
responses
nity

104)

t h e 46 q u e s t i o n s i n t h e t e s t a c c o r d i n g t o c o n t e n t

category.

the

14 t h r o u g h 20 ( p a g e s 90 t h r o u g h

19 i n t h e " M a r g i n a l i s m a nd E q u i l i ­

Question
had t h e

(2.7 p e r c e n t ) .

1 from th e " P r o d u c t i v e

Re­

lowest percentage of c o rre c t

Also,

Question

3 in

the "Opportu­

C o s t s a n d T r a d e - O f f s " s u b c a t e g o r y wa s a n o t h e r w h i c h had

a l o w p e r c e n t a g e o f c o r r e c t r e s p o n s e s ( 14. 1
compared a c r o s s t h e

p e r c e n t ) when

content categories.

The "(A) The B a s i c E c o n o mi c P r o b l e m " c a t e g o r y

in­

c l u d e d t h e q u e s t i o n s which had t h e h i g h e s t and t h e l o w e s t
p e r c e n t a g e o f c o r r e c t r e s p o n s e s by s t u d e n t s a c r o s s a l l
t e n t c a t e g o r i e s m e a s u r e d by t h e TEL.

con­

90
Table

14

Number a n d P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s
i n t h e T e s t o f E c o n o mi c L i t e r a c y R e l a t e d t o C o n t e n t
C a t e g o r y A:
The B a s i c E c o n o mi c P r o b l e m
N=1, 5 0 6

Test Questions
a nd
C o rrect Responses

Number o f
Correct
Responses

Percent of
Correct
Responses

Productive Resources:
1.

Three major f a c t o r s o f p r o ­
d u c t i o n a r e l a n d , l a b o r , a nd
capital.
Whi ch o f t h e f o l ­
lowing groups b e s t i l l u s t r a t e s
these fa c to rs ?
Iron ore,

clerks,

40

2.7

648

43.0

212

14.1

1,168

77.6

and t r u c k s .

Ssac.£iky_and C h o ia e s :
2.

What i s m e a n t by t h e s t a t e m e n t
t h a t every economic system
( s u c h a s t r a d i t i o n , command,
or m a r k e t economy) f a c e s t h e
fact of scarcity?
There a r e n o t enough p r o d u c ­
t i v e r e s o u r c e s to s a t i s f y a l l
wants of s o c ie ty .
QDDortunitv C o s t s and T r a d e - O f f s

3.

The o p p o r t u n i t y c o s t o f a new
p u b lic high school i s the:

•
•

o t h e r d e s i r a b l e economic goods
t h a t m u s t b e g i v e n up t o b u i l d
the school.
M a rg in a lism and E a u i l i b r i u m :
1 9.

Using th e i n f o r m a t i o n i n t h e
t a b l e a b o v e , we know t h a t a s
income i n c r e a s e s t h e r a t e o f
taxation:
i n c r e a s e s and t h e amount o f
tax i n c r e a s e s .

91

Table

15 p r e s e n t s t h e number a n d p e r c e n t a g e o f c o r ­

r e c t r e s p o n s e s by s t u d e n t s t o q u e s t i o n s r e l a t e d
Ec o no mi c S y s t e m s ” c o n t e n t c a t e g o r y .
of correct responses

to

t h e "(B)

The h i g h e s t p e r c e n t a g e

( 5 8 . 0 p e r c e n t ) wa s f o r

Q uestion 4 in

t h e " N a t u r e a n d T y p e s o f Ec o n o mi c S y s t e m s " c a t e g o r y .
tio n 7 in the " S p e c ia liz a tio n ,

C o m p a r a t i v e A d v a n t a g e , and

D i v i s i o n o f Labor" s u b c a t e g o r y had t h e
correct

responses
Table

(40.4

Ques­

lowest percentage of

percent).

16, p a g e 9 4 , l i s t s

t h e number and p e r c e n t a g e

o f c o r r e c t r e s p o n s e s by s t u d e n t s t o q u e s t i o n s p e r t a i n i n g
t h e "(C) M i c r o e c o n o m i c s :

to

R e s o u r c e A l l o c a t i o n and Income

D istrib u tio n " content category.

The h i g h e s t p e r c e n t a g e o f

correct responses

wa s f o r

"Markets,

( 73. 1

percent)

S u p p l y a n d Demand" s u b c a t e g o r y .

t h e " C o m p e t i t i o n and M ar k et S t r u c t u r e "
lowest percentage of

co rrect responses

The "(C) M i c r o e c o n o m i c s :

15 i n t h e

Q u e s t i o n 21 f r o m

s u b c a t e g o r y had t h e
(19.7 p e r c e n t ) .

R e s o u r c e A l l o c a t i o n and

I n c o me D i s t r i b u t i o n " c a t e g o r y i n c l u d e d
had t h e

Question

th e q u e s t i o n which

s e c o n d h i g h e s t p e r c e n t a g e o f c o r r e c t r e s p o n s e s by

students across a l l

c a t e g o r i e s m e a s u r e d by t h e TEL.

92
Table 15
Number and P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s
i n t h e T e s t o f E c o n o mi c L i t e r a c y R e l a t e d t o C o n t e n t
C a t e g o r y B:
Ec o n o mi c S y s t e m s
N=1, 5 0 6

Test Questions
and
C orrect Responses

Number o f
Correct
Responses

Percent of
Correct
Responses

874

58. 0

697

46. 3

840

55. 8

608

40. 4

N a t u r e and T v o e s o f E c o n o m i c
Systems
4.

Whi ch o f t h e f o l l o w i n g
q u e s t i o n s i s f a c e d by a l l
economic system s (i.e .,
t r a d i t i o n , command and
market)?
What g o o d s a n d s e r v i c e s w i l l
be p r o d u c e d ?

6.

Whi ch o f t h e f o l l o w i n g i s
t h e most e s s e n t i a l f o r a
m a r k e t economy?
A ctive com petition in the
m arketplace.
Ec o no mi c I n c e n t i v e s :

5.

I n a m a r k e t e c o n o my , t h e
purpose of p r o f i t s i s to:
persuade b u sin esses to pro­
d u c e w h a t c o n s u m e r s d e ma n d .
S p e c i a l i z a t i o n . Comoarative

Advantage. and-BlalaiQn-.of-La.hQr.;
7.

S p e c i a l i z a t i o n and e x change w i t h i n a n a t i o n or
between n a t i o n s i s l i k e l y
to have which o f th e
follow ing effects?
More g o o d s a n d s e r v i c e s c a n
be p r o d u c e d .

93
Table 15 (Cont.)

Test Questions
a nd
C o rrect Responses

Number o f
Correct
Responses

Percent of
Correct
Responses

Voluntary Exchange;
8.

W i t h i n a m a r k e t economy a
coastal state harvests a great
q u a n t i t y o f f i s h ; an i n l a n d
s ta te has a pro-d u ctiv e beef
c a ttle in-dustry.
I f exchanges
o f f i s h and b e e f t a k e p l a c e
between t h e s e s t a t e s :

827

5 4. 9

67 5

4 4. 8

both s t a t e s gain .

GQv.ecameQfc-InterventiQD.and
Re.gula.kiQQ:
9.

Suppose a l a r g e c i t y i s
in v e s tig a tin g the elim in atio n
o f r e n t c o n t r o l s on h o u s i n g a t
a t i m e when t h e v a c a n c y r a t e i s
e x t r e m e l y l o w - - o n l y 1% o f a l l
apartm ents in the c i t y are
vacant.
Whi ch o f t h e f o l l o w i n g
i s m o s t l i k e l y to occur i f r e n t
c o n tro ls are elim inated?
An i n c r e a s e i n r e n t s , p e r h a p s
f o l l o w e d l a t e r by a n i n c r e a s e
in the supply o f housing.

94
Table 16
Number a n d P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s i n
t h e T e s t o f Ec o n o mi c L i t e r a c y R e l a t e d t o C o n t e n t
C a t e g o r y C:
Microeconomics:
Resource
A l l o c a t i o n a n d I n c o me D i s t r i b u t i o n
N=1 , 5 0 6

Test Questions
a nd
C orrect Responses

Number o f
Correct
Responses

Percent of
Correct
Responses

Income D i s t r i b u t i o n and Govern­
ment -.ae.liatr.lb.utlQH;
1 0.

Of t h e f o l l o w i n g w h i c h i s t h e
m o s t g e n e r a l c a u s e o f l ow i n d i ­
v i d u a l incomes in th e United
States?

352

23.4

410

27.2

743

49.3

785

52.1

Lack o f v a l u a b l e p r o d u c t i v e
s e r v ic e s to s e l l .
1 8.

The t a x
is a :

in the t a b l e above

progressive
Markets.
11.

income t a x .

S u p d I v . a n d Demand:

The demand f o r a f a c t o r o f
p r o d u c t i o n d e p e n d s l a r g e l y on:
t h e demand f o r t h e p r o d u c t o r
p r o d u c t s which i t h e l p s
produce.

14.

Te e n P o w e r , a t e e n a g e o r g a n i z a t i o n , p r o p o s e d t h a t t h e minimum
wage f o r t e e n s s h o u l d b e i n ­
creased.
What e f f e c t w o u l d
t h i s i n c r e a s e most l i k e l y have
on t e e n w a g e s a n d e m p l o y m e n t i n
a m a r k e t e c onomy?
Wage r a t e s w o u l d go up and t e e n
e m p l o y m e n t w o u l d go down.

95
Table 16.

(Cont.)

Test Questions
and
C o rre c t Responses

Number o f
Correct
Responses

Percent of
Correct
Responses

Mark&kSj.. 5upply.-and Demand:
(Cont.)

15.

According to th e "law o f supp l y a nd d e m a n d , " i f t w i c e a s
many h e a d s o f l e t t u c e w e r e
gr o wn t h i s y e a r b e c a u s e o f good
w e a t h e r a s w e r e gr own l a s t y e a r :

1,101

73.1

473

31.4

t h e p r i c e o f l e t t u c e w o u l d go
down t h i s y e a r .

£&mB£Htittn-aadLMank&fc-£fcc.uc-tuce.:
1 2.

In a m a r k e t economy, t h e p u b l i c
i n t e r e s t i s s e r v e d e v e n when
i n d i v i d u a l s p u r s u e t h e i r own
p r i v a t e economic g o a l s , because
of:
the o p e ra tio n of com petitive
m arkets.

20.

You r e a d t h e f o l l o w i n g h e a d ­
line:
"COFFEE GROWERS FORM
MONOPOLY." How w i l l t h e new
c o f f e e monopoly most l i k e l y
d i f f e r from a h i g h l y c o m p e t i ­
t i v e c o f f e e growing i n d u s t r y .

415

27.6

296

19.7

There w i l l be l e s s i n c e n t i v e
f o r t h e c o f f e e g r o w e r s t o be
efficient.
21.

I f you saw a n e w s p a p e r h e a d ­
l i n e t h a t r e a d , "ACME WIDGET
CORPORATION RAISES PRICES:
REST OF WIDGET INDUSTRY EX­
PECTED TO FOLLOW," you w o u l d
know t h a t Acme W i d g e t C o r p o r ­
a t i o n wa s m o s t l i k e l y t o b e
i n an i n d u s t r y w i t h :
few s e l l e r s .

96
Table 16.

(Cont.)

Test Questions
a nd
C orrect Responses

Number o f
Correct
Responses

Percent of
Correct
Responses

" M a r k e t Fa i l u r e s : 11 Ig£or.m atiQ .Q
C o s ts, Rego.urEe.Immo.bllity,
E xternalities, e tc .
1 3.

I f consumers a re to e x e r c is e
t h e i r freedom o f c h o ice w is e ly
i n a m a r k e t economy, t h e y must:

920

61.1

549

36.5

know t h e p r i c e s o f a l t e r n a t i v e
products a v a ila b le .
23.

I t i s highly u n lik ely th a t
p r i v a t e b u s i n e s s f i r m s would
b u i l d and o p e r a t e t h e p l a n t s
a nd s e l l t h e i r s e r v i c e s d i r e c t ­
ly to in d iv id u a l r e s i d e n t s of
t h e C e n t r a l C i t y Area b e c a u s e :
(A s t o r y wa s p r o v i d e d f o r
Q u e s t i o n s 23 a n d 2 4 . )
i t would p r o b a b l y be impos­
s ib l e to provide smog-free a i r
t o t h o s e who a r e w i l l i n g t o
pay f o r i t w h i l e w i t h h o l d i n g
i t f r o m t h o s e who r e f u s e t o
pay.

24.

Suppose t h a t t h e government
o f C e n t r a l C ity were to b u i l d
and o p e r a t e t h e a i r - p u r i f i cation plants.
From t h e s t a n d ­
point of achieving efficien cy
in t h e a l l o c a t i o n o f economic
r e s o u r c e s , which o f the f o l l o w ­
i n g t a x e s s h o u l d be i n c r e a s e d
to p ro v id e the a d d i t i o n a l tax
re v e n u e s needed to f in a n c e the
operation of the a i r - p u r i f i cation plants?
Motor v e h i c l e f u e l

486

32.3

97
Table 16.

(Cont.)

Test Questions
and
C orrect Responses

Number o f
Correct
Responses

Percent of
Correct
Responses

The P r i c e . M e c h a n i s m ;
1 6.

The p r i c e o f s h o e s i s l i k e l y
t o be i n c r e a s e d by:
a decrease in the
shoes.

1 7.

611

40.6

605

40.2

762

50.6

supply o f

Assume t h a t t h e demand i n c r e a s e s for bread produced
by many c o m p e t i t i v e f i r m s .
The r e s u l t i n g r i s e i n t h e
p ric e of bread w i l l u su ally
lead to:
mor e b e i n g p r o d u c e d .

22.

The s u p p l y
creases at
demand f o r
absence of
price:

of a product in t h e same t i m e t h e
it falls.
In the
o th er changes i t s

w ill f a ll.

Table

17 r e v e a l s t h e number and p e r c e n t a g e o f c o r ­

r e c t r e s p o n s e s by s t u d e n t s t o t h e q u e s t i o n s r e l a t i n g
"(D) M a c r o e c o n o m i c s :
category.

E c o n o mi c S t a b i l i t y

Q u e s t i o n 25 i n

Unemployment and I n f l a t i o n "
" R e a l a n d Money I n c o m e :
the

and Growth" s u b ­

The h i g h e s t p e r c e n t a g e o f c o r r e c t r e s p o n s e s

p e r c e n t ) was f o r

had

to the

(52.6

t h e " A g g r e g a t e Demand:

subcategory.

Q u e s t i o n 30 i n t h e

P r i c e L e v e l Changes" s u b c a t e g o r y

lowest percentage of c o rre c t responses

(15.0 p e r c e n t ) .

98
Table

17

Number a n d P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s
i n t h e T e s t o f E c o n o mi c L i t e r a c v R e l a t e d t o C o n t e n t
C a t e g o r y D:
Macroeconomics:
E c o n o mi c
S t a b i l i t y and Growth
N=1, 5 0 6

Number o f
Correct
Responses

Test Questions
and
C orrect Responses

Percent of
Correct
Responses

A e e r e e a t e D e ma n d i _ UnemDl ovment
a nd_. I n f l a t i o n :
25.

The t o t a l o u t p u t o f t h e economy
i s b o u g h t by w h i c h o f t h e
follow ing th re e la rg e groups
of spenders?
Consumers, b u s i n e s s f i r m s ,
governments.

38.

792

52.6

391

26.0

463

30.7

724

48.1

and

O f t e n a n e c o n o my o p e r a t e s a t
l e s s th an f u l l employment.
T his i s most l i k e l y to o c c u r :
when t o t a l s p e n d i n g i s
inadequate.

39.

I f t o t a l demand d e c l i n e s r e l a ­
ti v e to the p roductive capa­
c i t y o f t h e economy, which o f
the follow ing i s l i k e l y to
occur?
A slower growth r a t e .
R e a l a n d Monev I n c o m e :
P r i c e Level Changes:

26.

The b e s t s i n g l e m e a s u r e o f t h e
t o t a l economic o u t p u t in th e
United S t a t e s i s th e :
gross national

product.

99
Table 17.

(Cont.)

Test Questions
and
C orrect Responses

Number o f
Correct
Responses

Percent of
Correct
Responses

R e a l a n d M o n e y . I n o o m &i
P rice Level Changes;
(Cont.)
27.

P a r k l a n d had b o t h r i s i n g u n employment and a h i g h r a t e o f
i n f l a t i o n d u r in g which p e r io d ?
(Graphs were p ro v id e d f o r
Q u e s t i o n s 2 7 f 28 a n d 2 9 . )

7 90

52.5

532

35.3

226

15.0

295

19.6

673

44.7

Years 4-5.
28.

P a r k l a n d had an i n c r e a s e i n
o u t p u t w i t h a r e l a t i v e l y low
i n f l a t i o n r a t e d u r in g which
period?
Years 3-4.

30.

Whi ch o f t h e f o l l o w i n g g r o u p s
i s t y p i c a l l y h u r t t h e m o s t by
unexpected i n f l a t i o n ?
Lender s.

42.

Whi ch o f t h e f o l l o w i n g f o u r
s t a t i s t i c s is generally ac­
c e p te d a s th e b e s t measure
o f th e economic growth o f a
nation?
R e a l income p e r c a p i t a .
Money a n d M o n e t a r y P o l i c y ;

31.

The c o m m e r c i a l b a n k i n g s y s t e m
c r e a t e s money when b a n k s :
extend lo an s to the p u b lic .

100

Table 17.

(Cont.)

Test Q uestions
and
C orrect Responses

Number o f
Correct
Responses

Percent of
Correct
Responses

Money a n d M o n e t a r y P o l i c y ;
(C ont.)
32.

The f u n c t i o n s o f money a r e t o
serve as:

657

43.6

288

19.1

423

28.1

438

29.1

609

40.4

a u n i t o f a c c o u n t , a medi um o f
e x c h a n g e , and a s t o r e o f v a l u e .
34.

The F e d e r a l R e s e r v e B o a r d g e n e r a l l y t r i e s to in c re a se the
money s u p p l y when i t w a n t s t o :
f i g h t unemployment.

A ggregate Supply and. Pr.od.uc.tiae
GaRaaifcg:
33.

The l i m i t o f a n e c o n o m y ’ s r e a l
o u t p u t a t any tim e i s s e t by:
t h e q u a n t i t y and q u a l i t y o f
l a b o r , c a p i t a l , and n a t u r a l
resources.

EfiaQQ.mig.-Gc.attt h :
35.

To e x p e r i e n c e e c o n o m i c g r o w t h
a d e v e lo p in g c o u n t r y must:
increase

investment

S avin g, investm ent,..and.
Enadiifitivifcy:
36.

I n a m a r k e t e c o n o my h i g h
wages depend l a r g e l y upon:
high ou tpu t per worker.

101

Table 17.

(Cont.)

Test Questions
a nd
C o rrect Responses

Number o f
Correct
Responses

Percent of
Correct
Responses

Fisfi.aLPo.liaY,:__ lax.asu-.Expe. ad i tures,

37.

and T r a n s f e r s :

In c re a sin g the f e d e r a l budget
s u r p l u s i s mor e d e s i r a b l e i n
a period of:

370

24.6

464

30.8

445

29.5

inflation.
40.

I f , when t h e r e i s f u l l e m p l o y ­
ment t h e f e d e r a l g overnm ent
in c r e a s e s i t s spending w ith o u t
in c re a sin g i t s tax revenues,
generally:
in fla tio n w ill occur.

41.

Increased ta x a tio n i s the p re­
f e r r e d method o f f i n a n c i n g
g o v e r n m e n t s p e n d i n g when :
t h e economy i s e x p e r i e n c i n g
inflation.

The "(D) M a c r o e c o n o m i c s :
Growth" c a t e g o r y

E c o n o mi c S t a b i l i t y

and

i n c l u d e d a n u n u s u a l number o f q u e s t i o n s

w i t h l o w p e r c e n t a g e s o f c o r r e c t r e s p o n s e s by t h e
compared a c r o s s t h e

s t u d e n t s when

seven content c a te g o rie s.

The c o n t e n t c a t e g o r i e s e x a m i n e d i n T a b l e

18 t h r o u g h

20 r e f l e c t t h e t y p e o f f a c t u a l k n o w l e d g e u s u a l l y r e q u i r e d t o
gain a f u l l e r
clude

u n d e r s t a n d i n g o f economic i s s u e s .

statistical

They i n ­

c o n c e p t s which m easure and e x p l a i n e c o ­

n o mi c p e r f o r m a n c e a n d t h e e f f e c t o f v a r i o u s e c o n o m i c p o l i ­
c i e s (Hansen,

1 9 7 7 , p. 7 ) .

102

T a b l e 18 p r o v i d e s t h e numbe r a n d p e r c e n t a g e o f c o r ­
r e c t r e s p o n s e s by t h e

students r e la tin g

W o r l d Economy” c o n t e n t c a t e g o r y .
q u e s ti o n in th e ”I n t e r n a t i o n a l

to

Q u e s t i o n 43,

"(E) The
the only

Economics" s u b c a t e g o r y ,

c o r r e c t r e s p o n s e s by 2 4 . 5 p e r c e n t o f t h e
Table

the

had

students.

18

Number a n d P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o t h e Q u e s t i o n i n
t h e T e s t o f Ec o n o mi c L i t e r a c y R e l a t e d t o
C o n t e n t C a t e g o r y E:
The Wo r l d Economy
N=1 , 5 0 6

Test Question
and
C o r r e c t Response

Number o f
Correct
Responses

Percent of
Correct
Responses

I n te r n a tio n a l- E&Q.naml&a:
43.

For most n a t i o n s , t h e r e d u c t i o n
o f t a r i f f s would p r o b a b l y :

369

24.5

f o r c e some w o r k e r s o u t o f j o b s
in p ro te c te d i n d u s t r i e s .

T a b l e 19 l i s t s
r e s p o n s e s by t h e

t h e number a n d p e r c e n t a g e o f c o r r e c t

students pertaining

tu tio ns" content category.
responses

The h i g h e r

( 3 2 . 6 p e r c e n t ) wa s f o r

to

" ( F) E c o n o mi c I n s t i ­

percentage of c o rre c t

Q u e s t i o n 4 5.

Q u e s t i o n 44

had t h e l o w e r p e r c e n t a g e o f c o r r e c t r e s p o n s e s (23.2 p e r ­
cent) .

103
Table

19

Number a n d P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s
in the T e s t o f E conom ic.L iteracy R elated to
C o n t e n t C a t e g o r y F:
E c o n o mi c I n s t i t u t i o n s
N=1, 5 0 6

Test Questions
and
C orrect Responses
44.

Number o f
Correct
Responses

One a d v a n t a g e o f t h e c o r p o r a t e
form o f b u s i n e s s o r g a n i z a t i o n s
is that:

Percent of
Correct
Responses

350

23.2

491

32.6

s to c k h o ld e r s have li m i t e d
liability.
46.

Labor u n i o n s i n t h e U n ite d
States:
strengthened the bargaining
p o s itio n of unionized workers
in r e l a t i o n to t h e i r employers.

T a b l e 20 r e v e a l s t h e number and p e r c e n t a g e o f c o r ­
r e c t r e s p o n s e s by t h e

students r e la tin g

to

t h e "(G) C o n c e p t s

f o r E v a l u a t i n g Economic A c t i o n s and P o l i c i e s ” c o n t e n t c a t e ­
gory.

The h i g h e s t p e r c e n t a g e o f c o r r e c t r e s p o n s e s

p e r c e n t ) w a s f o r Q u e s t i o n 4 0.
percentage

of

correct

(30.8

Q u e s t i o n 37 h a d t h e l o w e s t

responses

(24.6

percent).

Less than o n e - t h ir d o f the s tu d e n ts c o r r e c t l y an­
swered any o f t h e q u e s t i o n s f o r
discussed

(E,

F f a nd G).

re sp o n ses ranged

the

last

three categories

The p e r c e n t a g e o f c o r r e c t

from 32.6 p e r c e n t

to

12. 5 p e r c e n t .

104
Table 20
Number a nd P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s
i n t h e T e s t o f E c o n o mi c L i t e r _ a c v R e l a t e d t o C o n t e n t
C a t e g o r y G:
Concepts for E v a lu a tin g
A c t i o n s and P o l i c i e s
N=1, 5 0 6

Test Questions
and
Correct Responses
29.

Number o f
Correct
Responses

What i s t h e e c o n o m i c s i t u a t i o n
a n d t h e m o s t a p p r o p r i a t e mone­
t a r y and f i s c a l p o l i c i e s d u r i n g
y e a r s 1-2?

Percent of
Correct
Response s

439

29.2

189

12.5

The economy i s i n a r e c e s s i o n ;
a budget d e f i c i t and/or easy
money p o l i c y i s n e e d e d .
45.

A n a t i o n a l system o f f r e e medi­
c a l c a r e f o r t h e aged poor i s
established.
The s y s t e m i s
p a i d f o r by a n i n c r e a s e i n
t h e i n c o me t a x .
These a c t i o n s
p r o m o t e o ne e c o n o m i c g o a l , b u t
wo r k a g a i n s t a n o t h e r .
Specif­
ic a lly , these actio n s are l i k e l y
to:
r e d u ce freedom b u t promote
equity.

To s u m m a r i z e Q u e s t i o n 5, among t h e
categories,
category

students

s c o r e d b e s t on q u e s t i o n s r e l a t i v e

"(B) E c o n o m i c S y s t e m s , " f o l l o w e d

Microeconomics:
"(A) The B a s i c

Resource A l l o c a t i o n
E c o n o mi c

E c o n o mi c S t a b i l i t y

seven content

Problem,"

by "(C)

I n c o me D i s t r i b u t i o n , "

"(D)

Macroeconomics:

and Gr ow th ," "(F) Economic

"(E) The W o r l d Ec on omy, " a n d "(G) C o n c e p t s f o r
Ec o n o mi c A c t i o n s a n d P o l i c i e s . "

to

Institutions,"
E valuating

105
Research Question 6
In which c o g n i t i v e l e v e l s a r e s t u d e n t s th e s t r o n g e s t
a nd w e a k e s t a s e v i d e n c e d by t h e i r a c h i e v e m e n t o n q u e s t i o n s
from t h e T e s t o f Economic L i t e r a c y
those l e v e l s ?
I.

The f i v e c o g n i t i v e l e v e l s a r e :
Knowledge

II.
III.
I V.
V.

(TEL) d e s i g n e d t o m e a s u r e

Comprehension
A pplication
A nalysis
Evaluation

T a b l e 21 s u m m a r i z e s t h e s t u d e n t s ' a c h i e v e m e n t i n
e a c h o f t h e f i v e c o g n i t i v e l e v e l s m e a s u r e d i n t h e TEL.

The

l e v e l w i t h i n which s t u d e n t s c o r r e c t l y answered th e h i g h e s t
percentage of questions (th a t is ,
level)

wa s " ( I I I )

A pplication."

their

strongest cognitive

For t h i s

level,

c e n t o f the r e s p o n s e s to q u e s t i o n s were c o r r e c t .
f o r which t h e

42.7 p e r ­
The l e v e l

s tu d e n t s c o r r e c t l y answered the lo w e s t p e r ­

c e n t a g e o f q u e s t i o n s wa s "(G) E v a l u a t i o n . "

Only 26.0 p e r c e n t

o f t h e q u e s t i o n s w e r e c o r r e c t l y a n s w e r e d by t h e s t u d e n t s .

106
T a b l e 21
Percentage o f C o rrect Responses to the Test
Literacy, a s R e l a t e d t o t h e
Five Cognitive Levels
N=1, 5 0 6

C a t e g o r y L e t t e r and
C ognitive Levels

Average P e r c e n t of
C o r r e c t Response s

I I I Application

42.7

I Kn o w l e d g e

39.7

IV A n a l y s i s

35.3

I I Comprehension

34.6

V Evaluation

26.0

T a b l e 21 p r o v i d e d

the percentage of c o r r e c t responses

by s t u d e n t s f o r e a c h o f t h e f i v e c o g n i t i v e l e v e l s .
22 t h r o u g h 30 ( p a g e s 107 t h r o u g h

125),

reveal

t h e n umber a n d

p e r c e n t a g e o f c o r r e c t r e s p o n s e s by s t u d e n t s f o r
q u e s tio n s w ith in each o f the f i v e c o g n i t i v e

Tables

specific

levels.

T a b l e 22 i n d i c a t e s t h e number a n d p e r c e n t a g e o f s t u ­
d e n ts ' c o r r e c t re s p o n s e s to
" ( I ) Knowledge" l e v e l .

te n q u e s t i o n s which measured the

The h i g h e s t p e r c e n t a g e o f c o r r e c t

r e s p o n s e s (58.0 p e r c e n t ) was f o r
had t h e

lowest percentage
T a b le 23, page

109,

Q u e s t i o n 4,

Question

30

( 15 p e r c e n t ) o f c o r r e c t r e s p o n s e s .
p r e s e n t s t h e number a n d p e r c e n t ­

age o f s t u d e n t s ' c o r r e c t r e s p o n s e s p e r t a i n i n g to t w e l v e
q u e s t i o n s which measured th e " ( I I )
The h i g h e s t

Comprehension" l e v e l .

percentage of c o rre c t responses

wa s f o r Q u e s t i o n

13.

Question

1 had t h e

( 61 . 1 p e r c e n t )

low est percentage

107
T a b l e 22
Number a nd P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s
i n t h e T e s t o f E c o n o mi c L i t e r a c y a s R e l a t e d
to C ognitive Level I:
Kn o wl e d g e
Nr1,506

Test Questions
a nd
C o rrect Responses
4.

Number o f
Correct
Responses

Whi ch o f t h e f o l l o w i n g q u e s ­
t i o n s i s f a c e d by a l l e c o n o ­
mics systems ( i . e . , t r a d i t i o n ,
command and m a r k e t ) ?

Percent of
Correct
Responses

874

58.0

840

55.8

352

23.4

792

5 2. 6

724

48.1

226

15.0

What g o o d s a n d s e r v i c e s w i l l
be p r o d u c e d ?
5.

I n a m a r k e t economy, t h e p u r ­
pose o f p r o f i t s i s t o :
persuade b u s in e s s e s to produce
wha t c o n s u m e rs demand.

10 .

Of t h e f o l l o w i n g w h i c h i s t h e
m o s t g e n e r a l c a u s e o f l ow i n d i ­
v i d u a l incomes i n th e United
States?
La c k o f v a l u a b l e p r o d u c t i v e
s e r v ic e s to s e l l .

25.

The t o t a l o u t p u t o f t h e economy
i s b o u g h t by w h i c h o f t h e
follow ing th re e la rg e groups
of spenders?
Consumers, b u s i n e s s f i r m s ,
governments.

26.

and

The b e s t s i n g l e m e a s u r e o f t h e
t o t a l economic o u t p u t in th e
United S t a t e s i s th e:
gross n ational product.

30.

Whi ch o f t h e f o l l o w i n g g r o u p s
i s t y p i c a l l y h u r t t h e m o s t by
unexpected i n f l a t i o n ?
Lenders.

108
Table 22.

(Cont.)

Test Questions
and
C orrect Responses
31.

Number o f
Correct
Responses

The c o m m e r c i a l b a n k i n g s y s t e m
c r e a t e s money when b a n k s :

Percent of
Correct
Responses

673

44.7

657

43.6

350

23.2

491

32.6

extend lo a n s to the p u b lic .
32.

The f u n c t i o n s o f money a r e
serve as:

to

a u n i t o f a c c o u n t , a medi um o f
e x c h a n g e , and a s t o r e o f v a l u e .
44.

One a d v a n t a g e o f t h e c o r p o r a t e
form o f b u s i n e s s o r g a n i z a t i o n
is that:
s t o c k h o l d e r s have l i m i t e d
liability.

46.

Labor u n i o n s i n t h e U n ite d
S t a t e s have:
strengthened the bargaining
p o s itio n of unionized workers
in r e l a t i o n to t h e i r em ployers.

109
T a b l e 23
Number a n d P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s
i n t h e T e s t o f Ec o n o mi c L i t e r a c y R e l a t e d
to C o gn itive Level I I :
Comprehension
N=1, 5 0 6

Test Questions
and
C orrect Responses
1.

Three major f a c t o r s o f p ro ­
d u c t i o n a r e l a n d , l a b o r , a nd
capital.
Whi ch o f t h e f o l ­
lowing groups b e s t i l l u s t r a t e s
these factors?
Iron ore,

2.

clerks,

Number o f
Correct
Responses

Percent of
Correct
Responses

40

2.7

648

43.0

697

46.3

608

40.4

743

49.3

and t r u c k s .

What i s m e a n t by t h e s t a t e m e n t
t h a t e v e r y economic system
( s u c h a s t r a d i t i o n , command,
or m a r k e t economy) f a c e s
the f a c t of s c a rc ity ?
There a r e n o t enough p r o d u c ­
ti v e re so u rc e s to s a t i s f y a l l
wants of a s o c ie ty .

6.

Whi ch o f t h e f o l l o w i n g i s t h e
most e s s e n t i a l f o r a m arket
e c onomy?
Active com petition
m arketplace.

7.

in the

S p e c i a l i z a t i o n and e x c h a n g e
w i t h i n a n a t i o n or between
n a t i o n s i s l i k e l y to have which
of the follow ing e f f e c t s ?
More g o o d s a n d s e r v i c e s c a n be
produced.

1 1.

The demand f o r a f a c t o r o f
p r o d u c t io n depends l a r g e l y on:
t h e demand f o r t h e p r o d u c t o r
p r o d u c t s which i t h e l p s produce.

110

Table 23.

(Cont.)

Test Questions
and
C orrect Responses
12.

I n a m a r k e t economy, t h e p u b l i c
i n t e r e s t i s s e r v e d e v e n when
i n d i v i d u a l s p u r s u e t h e i r own
economic g o a l s , because o f :

Number o f
Correct
Responses

Percent of
Correct
Responses

47 3

31.4

920

61.1

423

28.1

288

19.1

438

29.1

609

40.4

369

24.5

the operation of com petitive
markets.
1 3.

I f consumers a r e to e x e r c i s e
t h e i r freedom o f c h o ic e w is e ly
i n a m a r k e t economy, t h e y m ust:
know t h e p r i c e s o f a l t e r n a t i v e
products a v a ila b le .

33.

The l i m i t o f a n e c o n o m y ' s r e a l
o u t p u t a t any time i s s e t by:
t h e q u a n t i t y and q u a l i t y o f
l a b o r , c a p i t a l , a nd n a t u r a l
resources.

34.

The F e d e r a l R e s e r v e B o a r d g e n e r a l l y t r i e s to in c r e a s e
the
money s u p p l y when i t w a n t s t o :
f i g h t unemployment.

35.

To e x p e r i e n c e e c o n o m i c g r o w t h
a d e v e lo p in g c o u n t r y must:
increase investm ent.

36.

I n a m a r k e t e c on omy h i g h
wages depend l a r g e l y upon:
high o u tp u t per worker.

43.

For most n a t i o n s , t h e r e d u c t i o n
o f t a r i f f s would p r o b a b l y :
f o r c e some w o r k e r s o u t o f j o b s
in p ro te c te d i n d u s t r i e s .

111

of correct responses

(2.7 p e r c e n t ) f o r

this

level

a n d when

compared a c r o s s a l l o t h e r c o g n i t i v e l e v e l s .
T a b l e 24 l i s t s

t h e number a n d p e r c e n t a g e o f s t u ­

dents' c o rre c t responses r e la tin g
measured th e " ( I I I ) A p p l i c a t i o n "

to e l e v e n q u e s t i o n s which
level.

The h i g h e s t

c e n t a g e o f c o r r e c t r e s p o n s e s ( 7 7 . 6 p e r c e n t ) wa s f o r
19.

Q u e s t i o n 3 had t h e

s p o n s e s ( 14. 1
tively,

percent).

per­
Question

lowest percentage of c o rre c t r e ­
Test Questions

19 a n d

15,

respec­

had t h e h i g h e s t and second h i g h e s t p e r c e n t a g e o f

c o r r e c t r e s p o n s e s by t h e s t u d e n t s a c r o s s a l l

cognitive

levels.
T a b l e 25,

p a g e 115,

r e v e a l s t h e number a n d p e r c e n t a g e

o f s t u d e n t s ' c o r r e c t r e s p o n s e s to e i g h t q u e s t i o n s which
measured the "(IV) A n a l y s i s "
of co rrect responses
Q u e s t i o n 27.
correct

level.

(52.5 p e r c e n t )

Q u e s t i o n 38 h a d t h e

responses

(26.0

The h i g h e s t p e r c e n t a g e
by t h e

lowest percentage of

percent).

T a b l e 2 6 , p a g e 1 17 ,

i n d i c a t e s t h e number a n d p e r c e n t ­

age o f s t u d e n t s ' c o r r e c t r e s p o n s e s to f i v e
m e a s u r e d t h e "(V) E v a l u a t i o n " l e v e l .
of correct responses
Q u e s t i o n 45 h a d t h e

s t u d e n t s was f o r

(36.5 p e r c e n t )

q u e s t i o n s which

The h i g h e s t p e r c e n t a g e
was f o r

Question

23.

low est percentage of c o rre c t responses

(12.5 p e r c e n t ) .
L e v e l "(V) E v a l u a t i o n " h a d t h e n a r r o w e s t r a n g e o f
c o r r e c t r e s p o n s e s by t h e s t u d e n t s a c r o s s a l l
tive lev els.

of the cogni­

112

T a b l e 24
Number a n d P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s
i n t h e T e s t o f Ec o n o mi c L i t e r a c v R e l a t e d
to C ognitive Level I l l s
A pplication
N=1, 5 0 6

Test Questions
and
C o rrect Responses
The o p p o r t u n i t y c o s t o f a new
public high school i s the:

Percent of
Correct
Responses

212

14.1

827

54.9

675

&

3.

Number o f
Correct
Responses

o t h e r d e s i r a b l e economic goods
t h a t m u s t be g i v e n up t o b u i l d
the school.
8.

W i t h i n a m a r k e t eco no my a
coastal state harvests a great
q u a n t i t y o f f i s h ; an i n l a n d
s ta te has a productive beef
c a ttle industry.
I f exchanges
o f f i s h and b e e f t a k e p l a c e
between th e s e s t a t e s :
both s t a t e s g ain .

An i n c r e a s e i n r e n t s , p e r h a p s
f o l l o w e d l a t e r by a n i n c r e a s e
in the supply o f housing.

•

Suppose a l a r g e c i t y i s i n v e s t i g a t i n g the e lim in a tio n o f
r e n t c o n t r o l s on h o u s i n g a t a
t i m e when t h e v a c a n c y r a t e i s
e x t r e m e l y l o w — o n l y 1? o f a l l
apartm en ts in the c i t y are va­
cant.
Whi ch o f t h e f o l l o w i n g i s
most l i k e l y to occur i f r e n t
co n tro ls are elim inated?

oo

9.

113
Table 24.

(Cont.)

Test Questions
and
C orrect Responses
1 4.

Teen Power, a t e e n a g e o r g a n i z a t i o n , p r o p o s e d t h a t t h e minimum
wage f o r t e e n s s h o u l d b e i n ­
creased.
What e f f e c t wo u l d t h i s
i n c r e a s e m o s t l i k e l y h a v e on
t e e n wages and employment i n a
m a r k e t ec on o my ?

Number o f
Correct
Responses

Percent of
Correct
Responses

785

52.1

1, 101

73.1

611

40.6

605

40.2

Wage r a t e s w o u l d go up a n d t e e n
e m p l o y m e n t w o u l d go down.
15.

According to th e "law o f su pp ly
a n d d e m a n d , " i f t w i c e a s many
h e a d s o f l e t t u c e w e r e gr own
t h i s y e a r b e c a u s e o f go od w e a t h e r
a s w e r e g r o wn l a s t y e a r :
t h e p r i c e o f l e t t u c e w o u l d go
down t h i s y e a r .

16 .

The p r i c e o f s h o e s i s l i k e l y
t o be i n c r e a s e d b y :
a decrease
shoes.

17.

in the

supply of

Assume t h a t t h e demand i n c r e a s e s
f o r b r e a d p r o d u c e d by many com­
p e titiv e firm s.
The r e s u l t i n g
r i s e in the p r ic e o f bread w i l l
u su ally lead to:
mor e b e i n g p r o d u c e d .

19 .

Using th e i n f o r m a t i o n in the
t a b l e a b o v e , we know t h a t a s
income i n c r e a s e s t h e r a t e o f
taxation:
i n c r e a s e s and t h e amount o f
tax in c r e a s e s .

1,168

77.6

114
Table 24.

(Cont.)

Test Questions
and
C orrect Responses
20.

You r e a d t h e f o l l o w i n g h e a d l i n e :
"COFFEE GROWERS FORM MONOPOLY."
How w i l l t h e new c o f f e e m o n o p o l y
most l i k e l y d i f f e r from a h i g h l y
c o m p e t i t i v e c o f f e e growing
industry.
There w i l l be l e s s i n c e n t i v e
t h e c o f f e e g r o w e r s t o be
efficient.

21.

Number o f
Correct
Responses
415

Percent of
Correct
Responses
27.6

for

I f you saw a n e w s p a p e r h e a d l i n e
t h a t r e a d , "ACME WIDGET CORPORA­
TION RAISES PRICES:
REST OF
WIDGET INDUSTRY EXPECTED TO
FOLLOW," you w o u l d know t h a t
Acme W i d g e t C o r p o r a t i o n wa s m o s t
l i k e l y t o be i n an i n d u s t r y w i t h :

296

19.7

370

24.6

f ew s e l l e r s .
37.

Increasin g the fe d e ra l budget
s u r p l u s i s mo r e d e s i r a b l e i n
a period of:
inflation.

T a b l e 25
Number a n d P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s
i n t h e T e s t o f E c o n o mi c L i t e r a c y a s R e l a t e d
t o C o g n i t i v e L e v e l I V:
Analysis
Ns1,506

Test Questions
and
C o rrect Responses
1 8.

The t a x

in the

progressive
22.

The s u p p l y
creasesat
demand f o r
absence of
price:

Number o f
Correct
Responses

t a b l e above i s a :

Percent of
Correct
Responses

410

27.2

762

50.6

790

52.5

532

35.3

income t a x .

of a product in t h e same t i m e t h e
it falls.
In the
other changes i t s

w ill f a ll.
27.

P a r k l a n d h a d b o t h r i s i n g unem­
p l o y m e n t and a h i g h r a t e o f
i n f l a t i o n d u r in g which p e rio d ?
(Graphs were p r o v id e d f o r
q u e s t i o n s 2 7 , 28 a n d 2 9 . )
Years 4-5.

28.

P a r k l a n d had an i n c r e a s e i n
o u t p u t w i t h a r e l a t i v e l y l ow
i n f l a t i o n r a t e d u r in g which
period?
Years 3-4.

38.

O f t e n a n e c onomy o p e r a t e s a t
l e s s th an f u l l employment.
T his i s most l i k e l y to o c c u r :
when t o t a l
quate .

39.

spending i s

26.0

463

30. 7

inade­

I f t o t a l demand d e c l i n e s r e l a tiv e to the pro d u ctiv e c a p a c ity
o f t h e economy, which o f t h e
fo llo w in g i s l i k e l y to occur?
A slower growth r a t e .

391

Test Questions
and
C orrect Responses
40.

I f , when t h e r e i s f u l l e m p l o y ­
ment, th e f e d e r a l government
in c r e a s e s i t s spending w ithout
in c re a sin g i t s tax rev en u es,
generally:

Number o f
Correct
Responses

Percent of
Correct
Responses

464

30.8

445

29.5

in fla tio n w ill occur.
41.

Increased ta x a tio n i s the p re ­
f e r r e d method o f f i n a n c i n g
g o v e r n m e n t s p e n d i n g when:
t h e economy i s e x p e r i e n c i n g
inflation.

117
T a b l e 26
Number and P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o Q u e s t i o n s
i n t h e T e s t o f Economic L i t e r a c y a s R e l a t e d
t o C o g n i t i v e L e v e l V:
Evaluation
N=1, 5 0 6

Test Questions
and
C orrect Responses
23.

I t i s highly u n likely th a t p r i ­
v a t e b u s i n e s s f i r m s would b u i l d
a n d o p e r a t e t h e p l a n t s a nd s e l l
t h e i r s e rv ic e s d i r e c t l y to i n d i ­
vidual r e s i d e n t s o f the C entral
C i t y Area b e c a u s e :
(A s t o r y
was p r o v i d e d f o r q u e s t i o n s 23
and 2 4 . )

Number o f
Correct
Responses

Percent of
Correct
Response s

549

36.5

486

32.3

439

29.2

i t would p r o b a b l y be i m p o s s i b l e
to provide smog-free a i r to
t h o s e who a r e w i l l i n g t o p a y
for i t while w ithholding i t
f r o m t h o s e who r e f u s e t o p a y .
24.

Suppose t h a t t h e governm ent o f
C e n t r a l C i t y w e r e t o b u i l d and
o p erate the a i r - p u r i f i c a t i o n
plants.
From t h e s t a n d p o i n t o f
achieving e f f i c i e n c y in the
a l l o c a t i o n o f economic r e s o u r c e s ,
which o f th e f o ll o w i n g t a x e s
s h o u ld be i n c r e a s e d to p r o v i d e
the a d d itio n a l tax revenues
needed to f i n a n c e th e o p e r a t i o n
of the a i r - p u r i f i c a t i o n p la n ts?
Motor v e h i c l e f u e l .

29.

What i s t h e e c o n o m i c s i t u a t i o n
a n d t h e m o s t a p p r o p r i a t e mone­
t a r y and f i s c a l p o l i c i e s d u r i n g
y e a r s 1-2?
The economy i s i n a r e c e s s i o n ;
a budget d e f i c i t and/or easy
money p o l i c y i s n e e d e d .

118

Table 26.

(Cont.)

Test Questions
and
C orrect Responses
42.

Number o f
Correct
Responses

Whi ch o f t h e f o l l o w i n g f o u r
s ta t i s t i c s is generally ac­
c e p te d a s th e b e s t measure
o f th e economic growth o f a
nation?

Percent of
Correct
Responses

295

19.6

189

12.5

R ea l income p e r c a p i t a .
45.

A n a t i o n a l system o f f r e e medic a l c a r e f o r t h e aged poor i s
established.
The s y s t e m i s
p a i d f o r by a n i n c r e a s e i n
t h e income t a x .
These a c t i o n s
promote one econo mic g o a l , b u t
wor k a g a i n s t a n o t h e r .
Specif­
ic a lly , these a c tio n s are
lik e ly to:
r e d u ce freedom b u t promote
equity.

I n summary o f Q u e s t i o n 6 ,
levels,
"(H I)

among t h e f i v e c o g n i t i v e

s t u d e n t s s c o r e d b e s t on q u e s t i o n s r e l a t i n g t o l e v e l

A pplication,"

A nalysis,"

"(II)

follow ed

by " ( I )

Knowledge,"

"(IV)

C o m p r e h e n s io n ," and "(V) E v a l u a t i o n . "

Research Question 7
I s the average percentage of c o r re c t responses,
w i t h i n c o n t e n t c a t e g o r i e s and f o r c o g n i t i v e

levels,

signifi­

c a n tly d if f e r e n t a c ro ss the four c l a s s i f i c a t i o n s of schools
represented

in the p r e s e n t study?

119
T a b l e s 27 a n d 29 p r o v i d e t h e a n a l y s e s o f v a r i a n c e
used to i d e n t i f y d i f f e r e n c e s between th e fo u r c l a s s i f i c a ­
t i o n s o f s c h o o l s f o r c o n t e n t c a t e g o r i e s and c o g n i t i v e l e v e l s
i n t h e TEL; T a b l e s 28 a n d 30 d i s p l a y
of the

the average percentage

s t u d e n t s ’ c o r r e c t r e s p o n s e s t o t h e TEL q u e s t i o n s

r e l a t e d t o c o n t e n t c a t e g o r i e s and c o g n i t i v e

levels.

T a b l e 27 s h o ws t h e a n a l y s e s o f v a r i a n c e f o r t h e
s e v e n c o n t e n t c a t e g o r i e s which were used to
potential

statistically

s i g n i f i c a n t d i f f e r e n c e s between

C l a s s A, B, C, a n d s e c o n d a r y a r e a
center

schools.

A fam ily alpha

a l l of the analyses;
e n ces were

v o catio n al education
l e v e l o f 0 . 0 5 wa s u s e d f o r

no s t a t i s t i c a l l y

significant d iffe r­

found.

T a b l e 28,

p a g e 122, p r e s e n t s t h e p e r c e n t a g e o f c o r ­

r e c t r e s p o n s e s by t h e

stu d e n ts to the t e s t q u e stio n s for

seven co ntent c a te g o rie s as d i s t r i b u t e d
and s e c o n d a r y a r e a
highest

i d e n t i f y any

the

among C l a s s A, B, C,

vocational education center

schools.

The

p e r c e n t a g e o f c o r r e c t r e s p o n s e s ( 5 1 . 6 p e r c e n t ) was

i n t h e "(B) E c o n o mi c S y s t e m s " c o n t e n t c a t e g o r y by s t u d e n t s
from C l a s s C s c h o o l s .

The l o w e s t p e r c e n t a g e o f c o r r e c t

r e s p o n s e s ( 1 5 . 0 p e r c e n t ) wa s i n

t h e "(G) C o n c e p t s f o r

Eval­

u a t i n g Ec o n o mi c A c t i o n s and P o l i c i e s " c a t e g o r y b y t h e s t u ­
d e n t s from s e c o n d a r y a r e a

vocational education centers.

Table 27
A n a l y s e s o f V a r i a n c e f o r t h e Seven C o n t e n t C a t e g o r i e s I n c l u d e d
i n t h e TEL I t e m s b e t w e e n C l a s s A, B, C, and S e c o n d a r y
Ar ea V o c a t i o n a l C e n t e r S c h o o l s
N=1, 506

Sum o f
Squares

Content
Category

Degrees o f
Fr eedom

Mean
Square

F

P

mz

.5
.6

.8

NS

3

3.0
1.9

1.6

NS

13.2
5.1

2.6

NS

The B a s i c Economi c
Pr o b l e m

C

.ap.8.,8

Bet ween Gr o u p s
W i t h i n Gr o up s
Total

9.1
2.837.Q
2,847.0

Bet we en Gr o u p s
W i t h i n Gr ou ps
Total

UiZZtZ

1.5
910.3

3

120

B

Bet ween Gr o u p s
W i t h i n Gr o u p s
Total

1505

Economi c S y s t e m s
m

z

1505

Microeconomics:
Resource A llo c a ­
t i o n and Income
Distribution
39.7

7,662.9

3

mz
1505

Table 27.

(Cont.)

Content
Category
D

E

F

G

Sum o f
Squares

Degrees o f
Fr eedom

Mean
Square

Ma c r o e c o n o mi c s :
Economi c S t a ­
b i l i t y and
Growth
Bet ween Gr o u ps
W i t h i n Gr ou ps
Total

6,869.9

1 5QZ
1505

Bet ween Gr ou p s
W i t h i n Gr o u ps
Total

.6
278.0
278.6

Bet ween Gr o u p s
W i t h i n Gr o up s
Total

5 3 £ jl2.

m Z

593.3

1505

Bet ween Gr o u p s
W i t h i n Gr o u ps
Total

2.4
485.7
488.1

15Q Z

19.6

3

6.6
4.6

1.4

NS

3
.1502
1505

.2
.2

1.0

NS

3

.4
.4

1.0

NS

3

.8
.3

2.5

NS

The World Economy

Economic
Institutions
1. 1

Concepts for
Evaluating
Economi c A c t i o n s
and P o l i c i e s
1505

P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o t h e 46 TEL Q u e s t i o n s f o r Seven
C o n t e n t C a t e g o r i e s a s a F u n c t i o n o f C l a s s A, B, C, and
S e c o n d a r y Ar ea V o c a t i o n a l E d u c a t i o n C e n t e r S c h o o l
C lassifications

Content
Categories

A

Number o f
Questions
In Category
( N=46)

£l a.£ 2 _A
Av e r a g e
Percent
Correct
(N=713)

Glass.?
Average
Percent
Correct
(N=148)

Class C
Av e r a g e
Percent
Correct
(N=348)

Area_C.ePfcer.s
Av e r a g e
Percent
Correct
(N=297)

4

32.5

35.0

35.0

35.0

6

50.0

50.0

51.6

48.3

Microeconomics:
Resource A l l o ­
c a t i o n and Income
D istribution
Ma c r o e c o n o mi c s :
Economi c S t a b i l i t y
and Growth

14

40.0

39.2

42.1

38.5

17

32.9

33.5

3 4. 1

3 4. 1

E
F

The World Economy
Economi c I n s t i t u t i o n s

1
2

20.0
30.0

20.0
25.0

20.0
30.0

30.0
25.0

G

Concepts for Evalu­
a t i n g Economic
A c t i o n s and
Policies

2

20.0

20.0

25.0

15.0

B
C

D

The B a s i c Economic
Pr ob l e m
Economi c S y s t e m s

123
T a b l e 29 p r o v i d e s t h e a n a l y s e s o f v a r i a n c e f o r e a c h
o f t h e f i v e c o g n i t i v e l e v e l s w hi ch wer e u s e d t o i d e n t i f y any
potential

statistically

s i g n i f i c a n t d i f f e r e n c e s between

C l a s s A, B, C, a n d s e c o n d a r y a r e a
center
all

schools.

A fam ily alpha

o f the a n a ly s e s ,

vocational

education

l e v e l o f 0.05 was u s ed f o r

a n d t h e o n l y d i f f e r e n c e f o u n d wa s

b e tw e e n C l a s s C s c h o o l s and s e c o n d a r y a r e a v o c a t i o n a l e d u c a ­
t i o n c e n t e r s c h o o l s f o r t h e "(V) E v a l u a t i o n " l e v e l
3.483,

p.

(F =

< 0.0176).

T a b l e 30,

p a g e 125,

r e v e a l s the percentage of c o r r e c t

re sp o n s e s to the t e s t q u e s tio n s for

the f iv e c o g n itiv e

l e v e l s a s d i v i d e d i n t o C l a s s A, B, C, a n d s e c o n d a r y a r e a
vocational education center
not considered

in t h i s

schools.

study.

C l a s s D s c h o o l s were

S t u d e n t s from C l a s s C s c h o o l s

had t h e h i g h e s t p e r c e n t a g e o f c o r r e c t r e s p o n s e s
cent)

to q u e s tio n s

from th e " ( I I I ) A p p l i c a t i o n "

(43.6 p e r ­
level.

l o w e s t p e r c e n t a g e o f c o r r e c t r e s p o n s e s ( 24 p e r c e n t )

to

The
ques­

t i o n s w a s f r o m t h e " ( V) E v a l u a t i o n " l e v e l by t h e s e c o n d a r y
area

vocational

center

students.

The p e r c e n t a g e o f c o r r e c t

r e s p o n s e s f o r q u e s t i o n s a n s w e r e d by t h e s t u d e n t s f o l l o w e d
t h e same r a n k o r d e r f o r a l l

school c l a s s i f i c a t i o n s .

Table 29
Analyses of Variance for the Five Cognitive Levels Included in
t h e TEL I t e m s b e t w e e n C l a s s A, B, C, and S e c o n d a r y Ar ea
Vocational Center Schools
N=1, 506

Cognitive
Levels
I

III

IV

V

Degrees of
Fr eedom

Mean
Square

F

P

Knowledge

Bet ween Gr o up s
W i t h i n Gr o u ps
Total

1 5. 5
2* 13 6x 2
3,751.7

3
1502
1505

5.2
2.5

1.3

NS

Co mp r e h e n s i o n

Bet ween Gr ou ps
W i t h i n Gr ou ps
Total

11.3
{bM6*2
4,858.2

3

1.2

NS

m

3.8
3.2

Application

Bet ween Gr o u p s
W i t h i n Gr o u p s
Total

4.9
*U6Z6*5
4,681.4

3
1502
1505

1.6
3. 1

.5

NS

Analysis

Bet ween Gr o up s
W i t h i n Gr ou ps
Total

6.5
3* 17 2x 2
3,179.8

3
1502
1505

2.2
2. 1

1.0

NS

Evaluation

Bet ween Gr o up s
W i t h i n Gr o u p s
Total

10.2
1*506*1
1,516.3

3
1502
1505

3.4
1.0

3.4

. 0 17

i

1505

124

II

Sum o f
Squares

Table 30
P e r c e n t a g e o f C o r r e c t R e s p o n s e s t o t h e 46 TEL Q u e s t i o n s f o r F i v e
C o g n i t i v e L e v e l s a s a F u n c t i o n o f C l a s s A, B, C, and S e c o n d a r y
Ar ea V o c a t i o n a l E d u c a t i o n C e n t e r S c h o o l C l a s s i f i c a t i o n s

Cognitive
Levels

I

III
IV
V

Class A
Av e r a g e
Percent
Correct
(N=713)

Class &

Class C
Av e r a g e
Percent
Correct
(N=348)

Ave r a g e
Percent
Correct
(N=148)

Ar.§a_Ceot.e.r_s
Av e r a g e
Percent
Correct
(N=297)

Knowledge

10

39.0

39.0

41.0

40.0

Co mp r e h e n s i o n

12

34.2

35.0

35.8

34.2

Application

11

42.7

41.8

43.6

42.7

Analysis

8

35.0

35.0

36.2

35.0

Evaluation

5

26.0

26.0

28.0

24.0

125

II

Number o f
Questions
In Category
<N=46)

CHAPTER 5
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
Findings,
presented

in t h i s

conclusions,

and r e c o m m e n d a t i o n s a r e

chapter.

Summary o f P r o b l e m a n d _ B r o c e d u r e s
Since the

1950s t h e b u s i n e s s e d u c a t i o n p r o f e s s i o n

h a s made c o n s i s t e n t p r o g r e s s t o w a r d i n t e g r a t i n g e c o n o m i c
concepts into

its

curriculum .

A g o a l o f t h e p r o f e s s i o n and

s u p p o r tin g o r g a n i z a t i o n s has been to i n c r e a s e
literacy

l e v e l o f young p e o p l e .

mission for

t h e economic

I n 1969 t h e P o l i c i e s Com­

B u s i n e s s a nd E c o n o mi c E d u c a t i o n (PCBEE) p u b ­

l i s h e d a s t a t e m e n t r e p o r t i n g a c o n c e r n f o r d e v e l o p i n g an
understanding

of

economics.

The i n t e n t o f t h i s d e s c r i p t i v e
business education teach ers,

educators,

s t u d y was t o p r o v i d e
and s t a t e d e p a r t m e n t

personnel with inform ation about business education s tu ­
d e n t s ' u n d e r s t a n d i n g o f and c o g n i t i v e a c h i e v e m e n t i n b a s i c
economic c o n c e p t s .
Education
(TEL).

I n 1979 t h e J o i n t C o u n c i l on Ec o n o mi c

(JCEE) c o p y r i g h t e d

I t was a d m i n i s t e r e d

stu d en ts nationwide.

t h e T e s t o f Ec o n o mi c L i t e r a c y
in

The TEL w a s u s e d f o r

in s t r u m e n t to measure s e l e c t e d
students'

1977 t o s e c o n d a r y s c h o o l

understanding

of

this

study a s the

Michigan b u s in e s s e d u c a tio n

economics.
126

Pr.o.bl&m
Th e m a j o r p r o b l e m o f t h i s s t u d y w a s t o a s s e s s t h e
economic knowledge o f s e l e c t e d Michigan b u s i n e s s e d u c a t i o n
s tu d e n ts a t the secondary l e v e l .
s ta tu s of the

The e c o n o m i c l i t e r a c y

s t u d e n t s ' k n o w l e d g e wa s t o b e m e a s u r e d by

u s i n g t h e T e s t o f E c o n o mi c L i t e r a c y .

Ea c h q u e s t i o n i n t h e

t e s t w a s c a t e g o r i z e d by a c o n t e n t c a t e g o r y a n d a c o g n i t i v e
level

( A p p e n d i c e s D a n d E).

Demographic and r e l a t e d

data

were a l s o c o l l e c t e d .

Eno.c.£(iuc.^a
The p o p u l a t i o n f o r
enrolled

this

s t u d y was 1,506 s t u d e n t s

i n c o u r s e s t a u g h t by V o c a t i o n a l O f f i c e B l o c k (VOB)

p ro je ct teachers.

They w e r e s e l e c t e d b e c a u s e o f t h e i r

a v a i l a b i l i t y and e x p r e s s e d i n t e r e s t i n i m p r o v i n g b u s i n e s s
education in g e n e ra l.

At l e a s t

90 p e r c e n t o f t h e s e

d e n t s ' c l a s s e s were p a r t o f a s e c o n d a ry v o c a t i o n a l

stu­
business

and o f f i c e e d u c a t i o n program fund ed t h r o u g h t h e V o c a t i o n a l T echnical Education S e rv ic e

( V- T ES ) .

Testing occurred

four c l a s s i f i c a t i o n s of secondary sch o o ls:
and s e c o n d a r y a r e a

in

C l a s s A, B, C,

v ocational education center

schools.

C l a s s D s c h o o l s were n o t p a r t o f t h i s s tu d y b e c a u s e none o f
t h e VOB p a r t i c i p a t i n g t e a c h e r s w e r e f r o m s c h o o l s w i t h a
s t u d e n t e n r o l l m e n t o f l e s s t h a n 349.
The t e s t i n g

instrum ent,

t h e T e s t o f Ec o n o mi c

L i t e r a c y Form A, c o n s i s t e d o f 46 q u e s t i o n s s o r t e d

into

five

c o g n i t i v e l e v e l s and s e v e n c o n t e n t c a t e g o r i e s ( A p p e n d i c e s D
a n d E).

Another in s t r u m e n t ,

a questionnaire for

the

128
students,

solicited

d e m o g r a p h i c d a t a on p e r s o n a l ,

and s c h o o l b a c k g r o u n d .

A questionnaire

fam ily,

f o r c o m p l e t i o n by

t h e t e a c h e r s a d m i n i s t e r i n g t h e t e s t r e q u e s t e d d a t a on p o p u ­
lation,

school c l a s s i f i c a t i o n ,

and r e l a t e d i n f o r m a t i o n

( A p p e n d i x B) .
The c o r r e s p o n d e n c e r e l e v a n t t o t h i s s t u d y i s i n ­
c l u d e d i n A p p e n d i c e s A a n d B.

Th e f i r s t l e t t e r a n d a r e p l y

c a r d w e r e m a i l e d t o 98 t e a c h e r s on A p r i l

12,

1981.

A second

l e t t e r and c a r d w ere m a i l e d on A p r i l 20, 1981, t o t e a c h e r s
who d i d n o t r e s p o n d .

P a c k e t s were m a i l e d on A p r i l 28,

t o 53 t e a c h e r s who a g r e e d t o p a r t i c i p a t e .
contained a cover l e t t e r ,
tionnaire

sheet,

struction

sheet for

instructions,

Each p a c k e t

teacher

student survey q u estio n n aire
test,

te s t booklets,

1 9 81 ,

score

survey ques­

sheets,

in­

sheets,

num­

b e r 2 p e n c i l s f o r e a c h r e s p o n d e n t , and a stamped a d d r e s s e d
re tu rn envelope.

I n a d d i t i o n , a t e l e p h o n e number w a s p r o ­

v i d e d f o r q u e s t i o n s o r comments.

On J u n e 8 a nd J u n e 10

f o l l o w - u p t e l e p h o n e c a l l s w e r e made t o t e a c h e r s who h a d n o t
returned

the packets.

Fifty-three

t e a c h e r s from Michigan

secondary s c h o o ls a d m in iste re d the in stru m e n ts to

1,506

participating

1981.

s t u d e n t s b e t w e e n May 7 a n d J u n e 10,

The d a t a w e r e e n t e r e d o n t o t h e M i c h i g a n S t a t e U n i ­
v e r s i t y C y b e r 10 c o m p u t i n g s y s t e m a n d a n a l y z e d by t h e S t a ­
tistical

Package f o r

the S ocial

S c i e n c e s ( SPSS) p r o g r a m .

F r e q u e n c y d i s t r i b u t i o n s and d e s c r i p t i v e
computed.

s t a t i s t i c s were

No a t t e m p t a t r a n d o m n e s s wa s made i n t h e s t u d y ,

thus lim itin g i t s g e n e ra liz a tio n s.

A n a l y s e s o f v a r i a n c e and

129
S c h e f f e ' s p o s t hoc m u l t i p l e c o m p a r i s o n t e s t wer e u s e d t o
evaluate

t h e h y p o t h e s e s f o r r e s e a r c h Q u e s t i o n 7.
Findings
The d a t a u s e d i n t h i s s t u d y w e r e c o m p i l e d f r o m t h e

r e s p o n s e s o f 1,506 s e l e c t e d
students.

Michigan b u s in e s s e d u c a tio n

Each o f them r e s p o n d e d t o a q u e s t i o n n a i r e and

t o o k a 4 0 - m i n u t e T e s t o f Economic L i t e r a c y .
t e a c h e r s who a d m i n i s t e r e d
questionnaire.

Ea c h o f t h e

53

the in stru m en ts a l s o completed a

I n f o r m a t i o n from t h e q u e s t i o n n a i r e s r e v e a l e d

dem ographic and r e l a t e d

data about the

students;

the t e s t

measured economic knowledge.
The f o l l o w i n g

i s a summary o f f i n d i n g s r e l a t i n g

the s p e c if ic

q u e s t i o n s posed

(Percentages

may b e r o u n d e d . )

in t h i s d e s c r i p t i v e

to

study.

Research Question 1
What i s t h e c o m p o s i t e p r o f i l e o f t h e s t u d e n t s who
we r e t e s t e d
grade;

f o r c u r r e n t economic knowledge:

p a re n ts' or

pational area,

guardians' educational

and income l e v e l ;

sex;

age;

background,

occu­

and c l a s s i f i c a t i o n o f

secondary school?
To s u m m a r i z e t h e
Question 1 are h i g h l i g h t e d

s tu d e n ts' p r o f i l e s the fin d in g s for
in o u t l i n e

form a s f o l l o w s .

H ighlights of Student P ro file
SEX, AGE, GRADE
Sex:

95%

f e m a l e (4.5% m ale)

Age:

69%

17 o r

Grade:

99%

1 1 t h (37%) a n d 1 2 t h g r a d e

18 y e a r s o l d
(62%)

EDUCATIONAL LEVEL OF PARENTS OR GUARDIANS
Father:

Mother:

40%

high school graduates

29% l e s s

than high schoo l diploma

28% mo r e

than high schools ta t u s

54%

high

---------

school graduates

24% l e s s

than high school diploma

21% mo r e

than high school

status

OCCUPATIONAL AREA OF PARENTS OR GUARDIANS
Father:

Mother:

45% c r a f t s ,

foremen, o p e r a t i v e s

21% " o t h e r "

(management, s e l f employment, government)

34%

homemaker

20% c l e r i c a l
16% " o t h e r "

( s e l f - e m p l o y m e n t , managemen
computer o p e r a t i o n s )

INCOME LEVEL OF FAMILY (YEARLY)
Unknown

52% p l u s 2. 5% " B l a n k "

$20,000+

30% o v e r $ 2 0 , 0 0 0

$20,000-

16% under $19,000

131
CLASSIFICATION OF SCHOOL
C l a s s A:

47% e n r o l l m e n t o f

1,344+

C l a s s B:

10% e n r o l l m e n t o f

676-1,343

C l a s s C:

23% e n r o l l m e n t o f

349-675

Centers:

20% a r e a v o c a t i o n a l e d u c a t i o n c e n t e r s

Beseac.sli-flue,fitio.n-2
What w a s t h e c o m p o s i t e p r o f i l e o f t h e s t u d e n t s who
were t e s t e d i n te r m s o f a p r e v i o u s econom ics c o u r s e a n d / o r
re la te d courses?
business,

Examples o f r e l a t e d c o u r s e s are b a s ic

m arketing,

The f i n d i n g s

and cons ume r.
indicate

that

437 ( 2 9 . 0 p e r c e n t ) o f t h e

1,506 s t u d e n t s had t a k e n an e c o n o m i c s c o u r s e .
183 ( 1 2 . 2 p e r c e n t )

indicated

An a d d i t i o n a l

t h e y w o u l d b e t a k i n g a n e c o n o m­

i c s c o u r s e b e f o r e g r a d u a t i n g from h i g h s c h o o l .
questionnaire

i t was s t a t e d

c o u r s e w ith a major

In the

t h a t "An ECONOMICS c o u r s e

f o c u s on e c o n o m i c s a t l e a s t

is a

s ix weeks in

l e n g t h and t a k e n i n g r a d e s 8, 9 , 10, 11, o r 12."
The f i n d i n g s r e v e a l
s t u d e n t s had t a k e n a b a s i c

t h a t 874 ( 5 8 . 0 p e r c e n t ) o f t h e
business course,

c e n t ) had t a k e n a consumer c o u r s e ,
taken a m arketing course.

and

272 ( 18. 1 p e r ­

133 ( 8 . 8 p e r c e n t ) h a d

S t u d e n t s c o u l d h a v e t a k e n none or

any c o m b in a tio n o f t h e c o u r s e a r e a s

listed.

Research Question 3
I s an e conom ics c o u r s e o f f e r e d and r e q u i r e d a t
s c h o o l s where t h e

s t u d e n t s were t e s t e d ?

the

132
Among t h e 26 C l a s s A s c h o o l s ,
o f f e r e d an " econo m ics" c o u r s e ;

21 (81 p e r c e n t )

o n l y one

school required

it.

Six (86 p e r c e n t ) o f t h e s e v e n C l a s s B s c h o o l s o f f e r e d an
"economics" c o u r s e ;

o n l y one s c h o o l r e q u i r e d

it.

Four o f

th e t w e l v e C l a s s C s c h o o l s o f f e r e d an "economics" c o u r s e ;
three required
required

it.

C l a s s B had t h e h i g h e s t p e r c e n t a g e t h a t

an " e c o n o m ic s " c o u r s e .

education c e n te rs o ffe r
ing f a c i l i t i e s

Secondary area

vocational

v o c a t i o n a l programs a t t h e i r

a n d do n o t o f f e r

train­

c o u r s e s in "economics."

To w h a t e x t e n t do t h e t e a c h e r s e x p r e s s a n i n t e r e s t
in a t t e n d i n g workshops,

sem in a rs , or i n - s e r v i c e

programs to

l e a r n mor e a b o u t m e t h o d s o f i n t e g r a t i n g e c o n o m i c c o n c e p t s
into

th e ir courses?
Twenty-three

( 43 p e r c e n t ) o f t h e 53 t e a c h e r s who

a d m i n i s t e r e d th e t e s t would l i k e to a t t e n d workshops,
n a rs, or

in-service

programs e i t h e r

semi­

for c r e d i t or n o n c re d it

t o l e a r n mor e a b o u t m e t h o d s o f i n t e g r a t i n g e c o n o m i c c o n c e p t s
into

th e ir o ffic e education courses.

Approximately one-

t h i r d o f the t e a c h e r s responded they were u n d e c id e d ,

and

a p p r o x i m a t e l y 20 p e r c e n t i n d i c a t e d no i n t e r e s t .

&e.aaar.c.h..Qu^atiaa-5
Wh i ch o f t h e

s e v e n c o n t e n t a r e a s do s t u d e n t s u n d e r ­

s t a n d t h e m o s t an d t h e l e a s t a s e v i d e n c e d by t h e i r s c o r e s on
t h e T e s t o f E c o n o mi c L i t e r a c y ?
are:

The s e v e n c o n t e n t c a t e g o r i e s

133
A.

The B a s i c Ec o n o mi c P r o b l e m

B.

E c o n o mi c S y s t e m s

C.

Microeconomics:
D istribution

R e s o u r c e s A l l o c a t i o n a n d I n come

D.

Macroeconomics:

E c o n o mi c S t a b i l i t y a n d Gr owt h

E.

The Wo r l d Economy

F.

E c o n o mi c I n s t i t u t i o n s

G.

C o n c e p t s f o r E v a l u a t i n g E c o n o mi c A c t i o n s and
Policies

The f i n d i n g s r e v e a l
which s t u d e n t s c o r r e c t l y
q u e s t i o n s wa s "(B)

t h a t the c o n ten t category w ithin

answered th e h i g h e s t p e r c e n ta g e o f

Ec o n o mi c

Systems."

The c a t e g o r y

which th e s t u d e n t s c o r r e c t l y answered th e

for

low est percentage

o f q u e s t i o n s wa s "(G) C o n c e p t s f o r E v a l u a t i n g E c o n o mi c Ac­
t i o n s and P o l i c i e s . "

The c a t e g o r y among t h e f i r s t

c a t e g o r i e s in which th e

s t u d e n t s c o r r e c t l y answered th e

l o w e s t p e r c e n t a g e o f q u e s t i o n s w a s "(D)
Ec o n o mi c

S tability

four

Macroeconomics:

and Growth."

The c o n t e n t c a t e g o r i e s a n d p e r c e n t a g e o f c o r r e c t
r e s p o n s e s by t h e s t u d e n t s t o t h e TEL q u e s t i o n s ,

listed

h i g h e s t t o l o w e s t and a s th e y r e l a t e one t o a n o t h e r ,
Category

Efi.lLS.£Dt

B.

Ec o n o mi c S y s t e m s

50.0

C.

Microeconomics:
Resource
A l l o c a t i o n and D i s t r i b u t i o n

40.4

A.

The B a s i c Ec o n o mi c P r o b l e m

34.4

D.

Macroeconomics:
Ec o n o mi c
S t a b i l i t y a n d G r o wt h

33.5

F.

E c o n o mi c I n s t i t u t i o n s

27.9

from

are:

134
Categor.y
E.

The Wo r l d Economy

24.5

G.

Concepts for E v a lu a tin g
E c o n o mi c A c t i o n s a n d
Policies

20.9

Specific

qu estio n s w ithin f iv e o f the seven content

c a t e g o r i e s had h i g h o r
by t h e

Pence a t

low p e r c e n t a g e s o f c o r r e c t r e s p o n s e s

s t u d e n t s a s compared w i t h t h e r e m a i n i n g q u e s t i o n s .

The f o u r h i g h e s t a n d t h e f o u r

lowest percentages of co rrect

r e s p o n s e s t o t h e s e q u e s t i o n s a r e combined and d i s c u s s e d w i t h
f i n d i n g s f o r r e s e a r c h Q u e s t i o n 6.
Research Question 6
In which c o g n i t i v e

l e v e l s are stu d en ts the stro n g est

a n d w e a k e s t a s e v i d e n c e d by t h e i r a c h i e v e m e n t o n q u e s t i o n s
f r o m t h e Xsst..Q.f■■Es.Q.DO.mi£.Llfcenas.y> w h i c h i s d e s i g n e d
measure th o s e l e v e l s ?

The f i v e c o g n i t i v e l e v e l s a r e :

I.
II.
III.
I V.
V.

to

Kn o wl e d g e
Comprehension
A pplication
Analysis
Evaluation

The f i n d i n g s r e v e a l

th a t of the f iv e c o g n itiv e

l e v e l s t h e s t u d e n t s had t h e g r e a t e s t p e r c e n t a g e o f c o r r e c t
r e s p o n s e s to q u e s t i o n s a t th e t h i r d
A pplication,"
a nd " ( I I )

followed

by " ( I )

Comprehension."

" ( V) E v a l u a t i o n , " w a s t h e
with the o th er

levels,

cognitive

level,

"(III)

Knowledge," "(IV) A n a l y s i s , "

The m o s t c o m p l e x c o g n i t i v e

level,

s t u d e n t s ’ w e a k e s t when c o m p a r e d

with the l e a s t percentage o f

135
questions c o rre c tly

answered.

The o r d e r o f t h e c o g n i t i v e

l e v e l s w i t h i n which th e s t u d e n t s c o r r e c t l y answered th e
h ig h e s t to

lowest percentage of questions (th a t is ,

e s t to weakest) as r e l a t e d

to one a n o t h e r a r e :

Per.ce.nfc

L£X£l
Application

42.7

Kn o wl e d g e

39.7

I V.

Analysis

35.3

II.

Comprehension

34.6

Evaluation

26.0

III.
I.

V.

strong­

A d d i t i o n a l f i n d i n g s from r e s e a r c h Q u e s t i o n s 5 and 6
relate

to e i g h t s p e c i f i c

Literacy.

i t e m s f r o m t h e T e s t o f E c o n o mi c

Of t h e e i g h t i t e m s l i s t e d

below,

fo u r were q u es ­

t i o n s w i t h t h e h i g h e s t p e r c e n t a g e o f c o r r e c t r e s p o n s e s by
t h e s t u d e n t s and f o u r w e r e q u e s t i o n s w i t h t h e
c e n t a g e o f c o r r e c t r e s p o n s e s by t h e

lowest per­

students.

Ea c h o f t h e e i g h t TEL i t e m s a r e p r e s e n t e d
follow ing order:
tive

level;

question are

c o n t e n t c a t e g o r y and s u b c a t e g o r y ; c o g n i ­

percentage of c o rre c t responses;

t i o n and an s w e r.
given

in the

The t h r e e

and t e s t q u e s ­

i n c o r r e c t c h o ic e s to each t e s t

i n t h e TEL ( A p p e n d i x B).

The f o u r q u e s t i o n s w i t h t h e h i g h e s t p e r c e n t a g e o f
c o r r e c t r e s p o n s e s by t h e
(A)
Equilibrium ,

students are as follow s.

The B a s i c E c o n o m i c P r o b l e m ,
(III)

A p p l i c a t i o n . 77.6 p e r c e n t .

M a r g i n a l i s m a nd
Question

19:

U s i n g t h e i n f o r m a t i o n i n t h e t a b l e a b o v e , we kn o w t h a t a s

136
income i n c r e a s e s t h e r a t e o f t a x a t i o n ( i n c r e a s e s and t h e
amount o f

tax

increases).

(C) M i c r o e c o n o m i c s :
D istribution,
73. 1

Markets,

percent.

last

year

S u p p l y a n d Demand,

Question

and demand," i f

R e s o u r c e A l l o c a t i o n and Income

15:

According to th e "law o f supply

t w i c e a s many h e a d s o f l e t t u c e

D istribution,
Immobility,

R e s o u r c e A l l o c a t i o n a n d I n c o me

"Market F a i l u r e s " :

E xternalities,

Question

13:

etc.,

(I)

(II)

61. 1
their

products a v a ila b le ) .

E c o n o mi c S y s t e m s ,
Knowledge,

Comprehension,

Resource

i n t h e m a r k e t economy, t h e y must

(know t h e p r i c e s o f a l t e r n a t e
(B)

Inform ation Costs,

I f consumers a re to e x e r c is e

freedom o f c h o ic e w i s e l y

Systems,

w e r e gr o wn

( t h e p r i c e o f l e t t u c e w o u l d go down t h i s y e a r ) .

(C) M i c r o e c o n o m i c s :

percent.

( I I I ) Ap p l i c a t i o n ,

N a t u r e a n d T y p e s o f Ec o n o mi c

5 8. 0 p e r c e n t .

Q u e s t i o n 4:

Whi ch o f

t h e f o l l o w i n g q u e s t i o n s i s f a c e d by a l l

economic system s

(i.e.,

( What g o o d s a n d

tradition,

command a n d m a r k e t ) ?

s e r v i c e s w i l l be p r o d u c e d ? )
The f o u r q u e s t i o n s w i t h t h e
c o r r e c t r e s p o n s e s by t h e

lowest percentage of

students are as follow s.

(A) The B a s i c E c o n o m i c P r o b l e m ,
sources,

(II)

Comprehension,

2.7 p e r c e n t .

Three major f a c t o r s o f p r o d u c t i o n a r e
capital.
these

P r o d u c t i v e Re­

land,

Question

1:

l a b o r , a nd

Whi ch o f t h e f o l l o w i n g g r o u p s b e s t i l l u s t r a t e s

factors?

(Iron ore,

(G) C o n c e p t s f o r
Policies,

no s u b c a t e g o r y ,

clerks,

and t r u c k s . )

E v a l u a t i n g E c o n o m i c A c t i o n s a nd
(V) E v a l u a t i o n .

12. 5 p e r c e n t .

137
Q u e s t i o n 45:

A national

system o f f r e e m e d ic a l c a r e f o r the

aged poor i s e s t a b l i s h e d .
increase

i n income t a x .

The s y s t e m i s p a i d f o r by a n
These a c t i o n s promote one economic

g o a l , b u t wo r k a g a i n s t a n o t h e r .
are

likely

to:

Specifically

(red u ce freedom b u t promote e q u i t y ) .

(A) The B a s i c E c o n o mi c P r o b l e m ,
and T r a d e - O f f s ,
3:

these actions

(III)

Ap p l i c a t i o n ,

Opportunity Costs

14.1 p e r c e n t .

Question

The o p p o r t u n i t y c o s t o f a new p u b l i c h i g h s c h o o l

(other d e s ira b le
build

the

i s the:

e c o n o m i c g o o d s t h a t m u s t b e g i v e n up t o

school).

(D) M a c r o e c o n o m i c s :
R e a l a n d Money I n c o m e :
15. 0 p e r c e n t .

E c o n o mi c S t a b i l i t y

Price Level

Q u e s t i o n 30:

and Growth,

Changes, ( I ) KnowledgeT

Whi ch o f t h e f o l l o w i n g g r o u p s

i s t y p i c a l l y h u r t t h e mos t by u n e x p e c t e d i n f l a t i o n ?
(Lenders.)

Research, Questlan.-Z
I s the average percentage of c o r re c t responses,
w i t h i n c o n t e n t c a t e g o r i e s and f o r c o g n i t i v e

levels,

signifi­

c a n t l y d i f f e r e n t a c ro ss the four c l a s s i f i c a t i o n s of sc h o o ls
represented

in the p re s e n t

study?

Among s c h o o l s no s t a t i s t i c a l l y
e n c e s were found in e i t h e r
tive

levels,

these items,

the c o n te n t c a t e g o r i e s or c o g n i­

e x c e p t f o r t h e "(V) E v a l u a t i o n " l e v e l .

For

stu d e n ts in C la ss C sc h o o ls scored higher

s tu d e n ts in secondary area
3 . 4 8 3 , p. < 0 . 0 1 7 6 ) .
for a l l

significant d iffe r­

vocational

A fam ily alpha

of the a n a ly s e s of variance.

than

e d u c a t i o n c e n t e r s (F =

l e v e l o f 0.05 was used

138
E v e n t h o u g h no s t a t i s t i c a l l y
were found,

sign ifican t differences

the fo llo w in g p o in ts are h ig h lig h te d because

t h e y may b e o f e d u c a t i o n a l

i n t e r e s t to

some r e a d e r s .

The s t u d e n t s f r o m C l a s s C s c h o o l s :
same o r a s l i g h t l y

(1) a v e r a g e d t h e

higher percentage of c o r re c t responses

f o r t h e c a t e g o r i e s a s compared a c r o s s t h e s c h o o l c l a s s i f i c a ­
tions,

(2) a v e r a g e d

the h ig h est percentage

(51.6 p e r c e n t ) o f

c o r r e c t r e s p o n s e s f r o m t h e "(B) E c o n o m i c S y s t e m s " c a t e g o r y
a s compared t o

the

p opulation's

50.0 p e r c e n t ,

higher percentage of c o rre c t responses for
Evaluating

Economic A c t i o n s ,

W o r l d Economy" c a t e g o r y ,
centage

(3) a v e r a g e d

"(G) C o n c e p t s f o r

a n d P o l i c i e s " t h a n f o r "(E) The

a nd ( 4 ) a v e r a g e d

the h ig h e s t p e r­

( 43 p e r c e n t ) o f c o r r e c t r e s p o n s e s f o r

A pplication"

a

the "(III)

l e v e l when c o m p a r e d w i t h t h e p o p u l a t i o n ' s 42. 7

percent.
Also,

t h e s t u d e n t s from C l a s s A s c h o o l s a v e r a g e d a

s l i g h t l y higher percentage of c o r r e c t responses for
"(C)

Macroeconomics:

Economic S t a b i l i t y

the

and Growth" c a t e g o r y

t h a n f o r "(A) The B a s i c Ec o n o mi c P r o b l e m " c a t e g o r y ,

and

C lass B stu d en ts averaged the

same f o r b o t h t h e " ( I I ) Com­

p r e h e n s i o n and " (IV ) A n a l y s i s "

levels.

Conclusions
B a s e d on t h e f i n d i n g s o f t h i s s t u d y ,

several conclu­

s i o n s may b e d r a w n .
1.

Assuming t h e c o n t e n t o f t h e t e s t

range of a b i l i t i e s o f the

i s w ith in the

s t u d e n t s , and a s s u m i n g t h e t e s t

139
measures ad eq u ately the

sev en economic c o n t e n t c a t e g o r i e s ,

t h e s t u d e n t s t e s t e d were n o t a c h i e v i n g a s h i g h l y i n any o f
t h e economic c o n t e n t c a t e g o r i e s a s m i g h t be e x p e c t e d .
the seven content c a te g o rie s ,
answered

Among

the stu d en ts c o r r e c t l y

the h ig h e s t percentage

(50.0 p e r c e n t ) o f q u e s t i o n s

i n t h e c a t e g o r y o f "(B) E c o n o mi c S y s t e m s , " a n d t h e l o w e s t
percentage

(20.9 p ercent) o f q u estio n s in the area

of

" ( G ) C o n c e p t s f o r E v a l u a t i n g Ec o n o mi c A c t i o n s a n d P o l i c i e s . "
2.

Assuming t h e c o n t e n t o f t h e t e s t i s w i t h i n

the

r a n g e o f a b i l i t i e s o f t h e s t u d e n t s , a nd a s s u m i n g t h e t e s t
measures ad eq u ately the f i v e c o g n itiv e l e v e l s ,

the stu d en ts

t e s t e d were n o t a c h i e v i n g a s h i g h l y a s m i g h t be e x p e c t e d i n
any o f t h e c o g n i t i v e

levels.

Among t h e f i v e c o g n i t i v e

l e v e l s which t h e t e s t i t e m s were d e s i g n e d t o m e a s u re ,
s t u d e n t s c o r r e c t l y answered
percent) of questions a t
the low est percentage

the h ig h e s t percentage

the

(42.7

the " ( I I I ) A p p lic a tio n " l e v e l ,

(26.0 p e r c e n t ) o f q u e s t i o n s a t

and

the

"(V) E v a l u a t i o n " l e v e l .
3.

Although stu d e n ts did b e t t e r

seven economic c o n t e n t c a t e g o r i e s ,
dominately stronger

in th re e o f the

th ey were not p r e ­

in any one o f th o s e t h r e e ;

that is,

of

a l l the t e s t item s, the four w ith the h ig h e st p ercentage of
c o r r e c t r e s p o n s e s were d i s t r i b u t e d

among t h o s e t h r e e

categories.
4.

Although stu d e n ts did b e t t e r

five cognitive le v e ls ,

in th re e o f the

th ey were n o t p r e d o m in a te ly s tr o n g e r

i n any one o f t h o s e t h r e e ;

that

is,

of a l l

the t e s t

items,

140
the four with the h ig h e s t percentage of c o r r e c t resp o n ses
were d i s t r i b u t e d
5.

among t h o s e t h r e e l e v e l s .

Although

s t u d e n t s were weaker

s e v e n economic c o n t e n t c a t e g o r i e s ,

in three of the

th ey were n o t predom i­

n a t e l y weaker in any one o f th o s e t h r e e ; t h a t i s , o f a l l
test

the

items, the four with the low est percentage of c o r re c t

r e s p o n s e s were d i s t r i b u t e d
6.

Although

among t h o s e

three categories.

s t u d e n t s were weaker i n fo u r o f the

fiv e cognitive le v e ls ,

th ey were n o t p r e d o m in a te ly weaker in

any one o f t h o s e f o u r ;

that

four with the
distributed
7.

is,

of a l l

the t e s t item s,

the

l o w e s t p e r c e n t a g e o f c o r r e c t r e s p o n s e s were

among t h o s e f o u r c a t e g o r i e s .
The c l a s s i f i c a t i o n o f s c h o o l s w h i c h t h e

a t t e n d e d made no d i f f e r e n c e

in t h e i r

students

economic u n d e r s t a n d i n g

a s m e a s u r e d by t h e TEL e x c e p t a t t h e " ( V) E v a l u a t i o n "
On q u e s t i o n s f r o m t h a t l e v e l ,

level.

stu d en ts in C lass C schools

scored s i g n i f i c a n t l y higher

than did

vocational education center

schools.

s t u d e n t s from a r e a

Recommendations
B a s e d on t h e f i n d i n g s a n d c o n c l u s i o n s o f t h i s

study,

a number o f r e c o m m e n d a t i o n s may be made.
1.

Ea c h s c h o o l

system should d e v e lo p a lo n g -ran g e

p l a n or re v ie w i t s e x i s t i n g p l a n w ith a t l e a s t
t i v e s i n mi n d :

in fu s e economics in to the k in d e rg a rte n

through tw e lf th grade curriculum ,
local

two o b j e c ­

n e e d s and making i t

philosophy of education.

b a s i n g t h e pr og ra m on

c o n s is te n t with the sch o o l's
Of t h e

seven co n ten t c a te g o r ie s ,

141

t h e s t u d e n t s c o r r e c t l y answered o n l y h a l f th e q u e s t i o n s in
th e c o n t e n t c a t e g o r y th ey u n d e r s to o d th e most.
c o u l d l e a r n ab o u t economic c o n c e p ts e a r l i e r
tion,

If

students

in t h e i r educa­

p e r h a p s t h e i r a c h ie v e m e n t t e s t s would r e s u l t in h ig h e r

scores.
2.

Curriculum committees should d ev elo p workable

g u i d e l i n e s and s y s t e m a t i c ,

e f f e c t i v e approaches to ensure

r e l e v a n c e , c o n t i n u i t y , and c o n s i s t e n c y i n i n t e g r a t i n g e c o ­
n o mi c c o n c e p t s i n t o

the b u sin e ss education curriculum .

comparison w ith the o th e r c a t e g o r i e s ,

it

appears th at

d en ts are d e f i c i e n t in understanding concepts,
in a re a s

In
stu­

particularly

s u c h a s m i c r o e c o n o m i c s a nd e c o n o m i c s t a b i l i t y

and

growth.
3.

I n - s e r v i c e e d u c a tio n programs should in c lu d e

appropriate in stru c tio n a l

s t r a t e g i e s and m ethods which a l l o w

t e a c h e r s t o d e v e l o p and e v a l u a t e c u r r i c u l u m m a t e r i a l s t h a t
w i l l b e u s e f u l when i n t e g r a t i n g e c o n o m i c e d u c a t i o n
th e ir business education courses.

into

As e v i d e n c e d by t h e i r

s c o r e s , th e s t u d e n t s were w eakest in th e e v a l u a t i v e a r e a .
I f t h e t e a c h i n g and l e a r n i n g p r o c e s s can r e s u l t i n a b e t t e r
s t u d e n t u n d e r s t a n d i n g o f economic c o n c e p t s a t h ig h e r c o g n i ­
tive lev els,
levels,

th e t e s t s c o r e s sho u ld g r a d u a l l y improve in a l l

including the e v a lu a tiv e le v e l .
4.

The c o n t e n t o f p r e - s e r v i c e m e t h o d s c o u r s e s

s h o u l d be p e r i o d i c a l l y r e v i e w e d t o e n s u r e t h a t m et h o d s a r e
t a u g h t w h i c h make b u s i n e s s e d u c a t i o n t e a c h e r s b e t t e r
pared to teach economics.

I f ad m in istrato rs expect

pre­

142
f i r s t - y e a r t e a c h e r s t o h a v e an economic e d u c a t i o n b a c k ­
ground,

th e n s t u d e n t s from a l l

benefit,

and t h e r e s u l t

school c l a s s i f i c a t i o n s should

s h o u l d be g r e a t l y i n c r e a s e d economic

understanding.
5.
perience

V o c a t i o n a l O f f i c e B l o c k t e a c h e r s w i t h work e x ­

in the b u s i n e s s w o rld , academic p r e p a r a t i o n

in

b u s i n e s s e d u c a t i o n , and a b l o c k p e r i o d o f t e a c h i n g t im e
s h o u ld a c c e p t th e c h a l l e n g e to i n t e g r a t e economic c o n c e p t s
into th e ir
student's

s k i l l s and r e l a t e d m a t e r i a l s t o r a i s e t h e i r
literacy

in economics.

Teachers could

s p e c i f i c concepts through the semester or year

introduce

so t h a t

s tu d e n ts could have the o p p o rtu n ity to understand

the con­

c e p t s a t the knowledge through e v a l u a t i o n l e v e l s .

In t h i s

study,

(42.7

the h ig h est percentage o f c o r re c t responses

p e r c e n t ) wa s a t t h e " ( I I I ) A p p l i c a t i o n "
l o w e s t (26.0 p e r c e n t ) was a t
6.

level,

and t h e

t h e " ( V) E v a l u a t i o n "

Monies s h o u l d be a v a i l a b l e

level.

from t h e s t a t e and

f e d e r a l government to ensure t h a t v o c a t i o n a l b u s in e s s educa­
tion

s tu d e n ts have a c c e s s to high q u a l i t y

i n s t r u c t i o n which

p r e p a r e s t h e m t o be g a i n f u l l y e m p l o y e d a s i n f o r m e d me mbe r s
in t h e w o rld o f work.

The f o u r

q u e s tio n s w ith the h ig h e st

p e r c e n t a g e o f c o r r e c t r e s p o n s e s by t h e
5 8. 0 p e r c e n t

to 77.6 p e r c e n t .

quenced p a t t e r n o f l e a r n i n g ,
economic

s t u d e n t s r a n g e d from

Given the funds for a se­
students could a t t a i n

higher

understanding.
7.

V o catio n al b u s in e s s ed u catio n te a c h e r s should

i n c l u d e i n t h e i r p r o g r a m s t h e k n o w l e d g e and s k i l l s n e e d e d t o

143
h e l p s t u d e n t s a d d r e s s economic p r o b l e m s and I s s u e s l i k e l y

to

be e n c o u n t e r e d i n t h e b u s i n e s s and o f f i c e o c c u p a t i o n s .
8.

Members o f v a r i o u s b u s i n e s s a nd e c o n o m i c e d u c a ­

tio n o r g a n iz a tio n s should continue to

s u p p o r t and r e ­

emphasize the n o t io n t h a t h a v in g th e a b i l i t y

to understand

b u s i n e s s and econo mic i s s u e s and p r o b l e m s i s

important for

s t u d e n t s who a r e

s e e k i n g b u s i n e s s and o f f i c e o c c u p a t i o n

c a r e e r s.
Reco mmen dation s f o r Fur-then -Study
B a s e d on t h e f i n d i n g s ,
tions of th is
to p ics for
1.

study,

future

it

conclusions,

is possible

assessment of s tu d e n ts’ understanding

b a s i c economic c o n c e p t s s h o u l d be
educators, or

a r e r e a d y t o d r a f t and p a r t i c i p a t e
2.

A study

s t u d e n t s or former
b u s i n e s s and o f f i c e

s u g g e s t a number o f

studies.

Another

education teachers,

to

and recommenda­

of

conducted once b u s i n e s s
s t a t e department personnel
in a plan of action.

s h o u l d b e made t o d e t e r m i n e w h e t h e r
students,

after

positions,

assuming t h e i r

first

have the o p p o rtu n ity to le a r n

about economics r e l e v a n t to u n d e rsta n d in g t h e i r w orkplace.
3.

An i n v e s t i g a t i o n m i g h t i d e n t i f y

t h e economic

c o n c e p t s most needed f o r v o c a t i o n a l b u s i n e s s e d u c a t i o n
dents about
4.

to s t a r t working a t e n t r y - l e v e l
An e x a m i n a t i o n o f t h e

stu­

positions.

s t r u c t u r e and s u b s t a n c e o f

t h e b a s i c economic c o n c e p t s t a u g h t from th e k i n d e r g a r t e n

1H4
through tw e lf th grade,
area,

in clu d in g the busin ess education

would be u s e f u l .
5.

Additional

s t u d i e s might d e te rm in e which p r i n c i ­

p l e s o f economics a re p r e s e n t l y in c lu d e d in b a s ic b u s in e s s
courses,

as these c o u rses are the p re fe rre d choice of the

business education
6.

s t u d e n t s examined h e r e .

F u r t h e r r e s e a r c h c o u l d e x a m i n e how t o a t t r a c t

t e a c h e r s to i n - s e r v i c e programs which t r a i n
grate

economic c o n c e p t s
7.

into

them t o

inte­

th e ir courses.

A s e r i e s o f s t u d i e s m ight measure th e e f f e c t o f

in c re a se d economics t r a i n i n g fo r b u s in e s s e d u c a tio n t e a c h e r s
on t h e i r

s t u d e n t s ' p e r f o r m a n c e i n t h e c l a s s r o o m and s u b s e ­

q u en tly in the workplace.
8.

I t w o u l d b e u s e f u l t o k n o w how m o r e e f f e c t i v e

c u r r i c u l a c a n b e p l a n n e d so t h a t s t u d e n t s w i l l h a v e t h e
opportunity

to a c q u i r e h ig h e r d e g r e e s o f economic l i t e r a c y .

These e f f o r t s s h o u l d i n c l u d e s t u d y i n g t h e e f f e c t s on s t u d e n t
learn in g w ithin cooperating school d i s t r i c t s th a t p a r t i c i ­
pate in the Developmental

Ec o n o mi c E d u c a t i o n P r o g r a m (DEEP)

f o l l o w i n g t h e M a s t e r C u r r i c u l u m Guide Framework o r i g i n a t e d
by t h e J o i n t C o u n c i l on Ec o n o mi c E d u c a t i o n .
9.

An i n v e s t i g a t i o n

t o i d e n t i f y w h e r e r e s o u r c e s may

be o b t a i n e d whi ch c a n r e s u l t i n l o n g - t e r m ,
district-w ide

programs to

increase

o f economics would be most h e l p f u l .

quality,

students' understanding
P o s s ib le sources to

i n v e s t i g a t e a r e t h e A s s o c i a t i o n o f M i c h i g a n Economic Educa­
tio n Centers,

Michigan B u s in e s s E d u c atio n A s s o c i a t i o n , D e l t a

145
Pi E p s i l o n ,
tions,

s c h o o l b o a r d s , b u s i n e s s and community o r g a n i z a ­

th e Michigan Department o f E d u c atio n , f e d e r a l

agencies,

and

funding

foundations.

10.

A stu d y to d e te rm in e whether b u s i n e s s e d u c a t i o n

stu d en ts' understanding of the basic
the primary,

economic c o n c e p t s i s a t

in te r m e d ia te , or advanced c l u s t e r

level.

Br en n ek e (1981) d e s c r i b e s t h e c o n c e p t c l u s t e r s and e x p l a i n s
t h a t p r i m a r y c o n c e p t c l u s t e r s make up a c o r e o f e c o n o m i c
k n o w l e d g e w h i c h c a n b e e x p a n d e d a nd b u i l t u p o n w i t h c o n c e p t s
found

in

the

i n t e r m e d i a t e and a d v a n c e d c l u s t e r s (p.

8).

Implications
T h i s s t u d y h a s a number o f i m p l i c a t i o n s f o r ' b u s i n e s s
ed u catio n a t the secondary school
1.

level.

When c o m p a r e d w i t h t h e r e s u l t s o b t a i n e d f r o m t h e

n a t i o n a l l y no r me d T e s t o f E c o n o mi c L i t e r a c y , t h e s t u d e n t s
exam in ed h e r e a p p e a r e d t o be t h e low end o f t h e n a t i o n a l
study.

In both s tu d ie s ,

wa s h i g h e r
the

last

first

for the f i r s t

three.

If

it

is

the percentage of c o r r e c t resp o n ses
four co n ten t c a te g o r ie s than for
the case

t h a t concepts w ith in the

four c a te g o r ie s are fundamental to understanding the

o t h e r c o n c e p t s , t h e n one m ig h t s u r m is e t h a t t h e

last

three

c a t e g o r i e s would n o t h a v e r a n k e d a s low i f t h e s t u d e n t s '
mastery o f the f i r s t
2.

f o u r c o n c e p t s had b e e n s t r o n g e r .

The s t u d e n t s i n t h i s

s t u d y had t h e h i g h e s t

percentage o f c o r r e c t re sp o n s e s to q u e s tio n s a t
Application" cognitive le v e l.

the " (III)

P e r h a p s t h i s wa s b e c a u s e t h e y

146
had n o t f o r m a l l y l e a r n e d or remembered f a c t s and v o c a b u l a r y ,
b u t had i n f o r m a l l y l e a r n e d a p p l i c a t i o n s o f e c o n o m i c s from
fam ily,
a t home,

friends,

workers,

school,

or work.

t e l e v i s i o n programs, or r e a d in g —
In a d d itio n ,

some k n o w l e d g e and

c o m p r e h e n s i o n i n f o r m a t i o n may b e i m p l i c i t i n t h e q u e s t i o n s
a t the " ( I I I ) A p p lic a tio n "
able

level.

Also,

s t u d e n t s w e r e mor e

t o a n a l y z e a n d b r e a k down i n f o r m a t i o n i n t o p a r t s a n d

d e t e c t r e l a t i o n s h i p s t h a n t o u n d e r s t a n d and t e l l
mation in t h e i r

own w o r d s .

It

is possible

that

the in f o r ­
students are

n o t s tu d y in g economic c o n c e p t s in s c h o o l , a r e n o t s tu d y in g
t he m e n o u g h ,

a r e b e i n g p r e s e n t e d w i t h mo r e o f o n e c o n c e p t

than o th e rs ,

or a r e

3.

l e a r n i n g by r o t e .
Many o f t h e t e a c h e r s q u e s t i o n e d

in t h i s

d i d n o t e x p r e s s an i n t e r e s t i n a t t e n d i n g w o r k sh o p s t o h e l p
t he m i n t e g r a t e

economic e d u c a t i o n

Ryckman ( 1 9 8 1 ) ,

to the c o n tra ry ,

into

their

found t h a t

courses.
Michigan b u s i ­

n e s s and o f f i c e e d u c a t i o n t e a c h e r s r a n k e d "w o rk sh o p s,
nars,

or conferences" as t h e i r

service

f o r m a t " (p.

94).

first

semi­

p r e f e r e n c e f o r an i n -

Ryckman a l s o

found t h a t

teachers

considered "performance ta s k s concerned w ith course plann in g
and i n s t r u c t i o n "

as

im portant to

them (p.

96).

These f i n d ­

in g s might imply t h a t once e d u c a to r s c o u ld g e t t e a c h e r s
interested,

then workshops concerned w ith co u rse p la n n in g or

c o n s t r u c t i o n would be f e a s i b l e .

To e f f e c t i v e l y

integrate

economic c o n c e p t s a p e r s o n a l commitment and c o o p e r a t i o n i s
needed from t h e t e a c h e r s ,
tinuous involvement.

f o l l o w e d by e n t h u s i a s t i c

a nd c o n ­

study

147
4.

When mo r e r e f i n e d d a t a a r e o b t a i n e d

th e economic c o n c e p t s used most f r e q u e n t l y
a nd o f f i c e w o r k p l a c e ,
skills

so t h a t

in the b u sin ess

t h e n t h a t b o d y o f k n o w l e d g e s and

s h o u l d be i n t e g r a t e d

curriculum

to determ ine

in to the b u sin ess education

t h e s t u d e n t s ' e c o n o m i c d e f i c i e n c i e s may

b e l e s s e n e d , a h i g h e r l e v e l o f e c o n o m i c l i t e r a c y may b e
achieved,

a n d g a p s may b e c l o s e d .

5.

Perhaps i f a long-range e f f o r t

o r g a n iz e r s to in c r e a s e b u s in e s s ed u c a tio n
standing o f economics,

it w ill

i s made by s c h o o l
students' under­

p r o v i d e an i n c e n t i v e t o a

g r e a t e r p e rcen tag e o f male s tu d e n ts to e n r o l l
b u s in e s s ed u catio n programs,
for

in v o cation al

c u r re n tly a n o n tra d itio n a 1 area

males.
Raflaafclcms
This study h elp ed to a s s e s s b u s in e s s ed u catio n

dents' understanding of basic

economic c o n c e p t s .

considered e s s e n tia l

for a l l

want t o be e f f e c t i v e

in f i l l i n g

role

i n b u s i n e s s and o f f i c e
If

the

students'

students,

stu­

These a r e

i n c l u d i n g t h o s e who

th e ir p resen t and/or fu tu re

occupations.

TEL s c o r e s h a d b e e n t h e

h i g h e r when c o m p a r e d w i t h t h e n a t i o n a l l y

same o r

n o r me d d a t a ,

then

t h i s w r i t e r wou ld n o t a s u r g e n t l y r e q u e s t t h a t a t t e n t i o n be
directed
riculum .

toward i n t e g r a t i n g economic c o n c e p t s i n t o

The p r o c e s s m u s t b e g i n w i t h r e c o g n i t i o n by s c h o o l

d i s t r i c t s and t e a c h e r s o f t h e need t o
tion.

the c u r­

improve economic educa­

148
R e s ista n c e to changing te a c h in g methods,

m aterials,

a n d c u r r i c u l a r p a t t e r n s i s n o t a new p h e n o me n o n among
t e a c h e r s and i s t o be e x p e c t e d .

The r e a s o n s a r e

very v a lid ,

a s t e a c h e r s may r e a c t i n much t h e same way a s s t u d e n t s when
asked

to m a n ip u la te c o n t e n t in fo rm a tio n

i n w h i c h t h e y do n o t

have a strong background.
Mo s t t e a c h e r s a r e n o t e c o n o m i c s m a j o r s a n d may b e ­
come e m b a r r a s s e d o r a n g r y i f e x p e c t e d t o p r o d u c e r e s u l t s
a subject unfam iliar

t o t h e m.

If

te a c h e r s a re not knowl­

e d g e a b le or a r e i n s e c u r e w ith a t o p i c ,
or d e la y

t h e y may a v o i d ,

le a rn in g or teaching i t s co n ten t.

may r o t e t e a c h a t t h e c o g n i t i v e
g eared toward t e s t s ,

rather

skim,

Some t e a c h e r s

le v e l of application,

perhaps

t h a n aim f o r k n o w l e d g e and

comprehension l e v e l s because e i t h e r
th e m a t e r i a l or th ey b e l i e v e

in

they are u n fa m ilia r with

stu d en ts a lre a d y have the basic

terminology.
When t e a c h e r s f e e l f a v o r a b l e a b o u t i n t e g r a t i n g e c o ­
n omi c c o n c e p t s i n t o t h e i r c u r r i c u l u m ,
v o catio n al business education area,

specifically

d i a g n o s t i c t o o l s need to

be p r o v i d e d t o a s s e s s p e r i o d i c a l l y what t h e
and s u b s e q u e n t l y l e a r n s .
teaching;

in the

s t u d e n t knows

T e a c h e r s c a n n o t do a s s u m p t i v e

they must f i n d o u t what th e

s t u d e n t kn ows a b o u t

the con cep ts they p la n to d ev elo p .
I t m u s t b e r e m e m b e r e d t h a t s t u d e n t s n e e d t o be
t a u g h t c o n c e p t s so t h a t t h e y a r e m e a n i n g f u l
m a t e r i a l s c a n n o t be c o n t r i v e d .

I t must a l s o

t o them.

The

be r e m e m b e r e d

t h a t t e a c h e r s m u s t p l a c e a v a l u e on i n t e g r a t i n g e c o n o m i c

149
concepts in to the curriculum

if

such an e n d e a v o r i s t o b e g i n

and be e f f e c t i v e .
T e a c h e r s who a r e

interested

in improving th e i r

s k i l l s w i l l become b e t t e r t e a c h e r s , a n d w e l l - c o n s t r u c t e d
m a t e r i a l s w i l l make t h e i r j o b e a s i e r .
occur for

teachers as w ell as students.

A d iff e r e n c e should

APPENDICES

APPENDIX A

150

MICHIGAN STATE U NIV E RSIT Y
COLLEGE OF BUSINESS

EAST LANSING • MICHIGAN • 4W24

DEPARTM ENT O F BUSINESS LAW A N D OFFICE ADM INISTRATION

As a former capstone teacher, I believe we have the Ideal learning environment for
integrating economics into the office education classroom. In a P o l i o i e e Commieeion
f o r B u a in eea and Eoonomio E d u c a tio n 1959-1979 document, it was stated that "business
education, more than other fields, deals with the very things that economics is all
about." Anne S. Oaughtrey, author and business education leader, stresses the im­
portance of including economic concepts in block and simulation programs because it
is "vital to the preparation of students for office occupations in the future . "
Your help is needed in a study to assess the level of economic understanding of our
business education students.
Your participation in this assessment is requested by administering a AO-minute
T e a t o f Eoonomio L it e r a c y (TEL) to your vocational office education class(es) on a
date of your choice in the early part of May. You have been selected because you
have demonstrated educational leadership as a Vocational Office Block (VOB) Project
in-service participant. A packet will be provided including the Instruments, pencils,
and postage-paid return envelope.
I hope that you will be able to participate. As you know, the more scores Included
in the study, the more meaningful the study. The scores of your students will be
combined with the scores of the other students. The names of your students, your
name, and your school name will NOT be used as part of this study. YOU are the only
person who will receive the scores of your class in relation to the total scores from
the other VOB project participants in this study for use such as, Information for
curriculum planning, workshops, in-service projects, or professional development.
Please inform your principal about your plan to measure the economic background of
your vocational office students because the principal will probably be Interested in
the results.
Please complete and return the enclosed postage-paid card by April 17
the packet and general information.
Sincerely yours.
Annette Ryckman
Researcher
Ellis R. Thomas
Researcher's Advisor
Robert P. Poland
VOB Project Director

to receive

151

PLEASE RETURN THIS CARD
YES - I will have the T e a t o f Eoonomio L it e r a o y (TEL)
administered to my vocational office daaa/es.
TOTAL NUMBER OF STUDENTS THAT WILL PARTICIPATE.

_________ NO - I am unable to participate at this time.
Total number of students that could not participate.
Note:

If your name, address, or tip code on the other side of this
card is incorrect, please make the correction.
INSTRUCTOR'S NAME_______________________________
TELEPHONE NUMBER

(___ )_______________ Ext.______

PLEASE RETURN THIS CARD
YES - I will have the T e a t o f Eoonomio L it e r a c y (TEL)
administered to my vocational office dasa/es.
TOTAL NUMBER OF STUDENTS THAT WILL PARTICIPATE.

NO

- I am unable to participate at this time.
Total number of students that could not participate.

Note:

If your name, address, or zip code on the other side of this
card is Incorrect, please make the correction.
INSTRUCTOR'S NAME______________________________
TELEPHONE NUMBER

(

)

Ext.

152

MICHIGAN STATE U N IV E R SIT Y
COLLEGE O F BUSINESS

EAST LANSING • MICHIGAN • 4EU4

DEPARTM ENT O P BUSINESS LAW A N D OFFICE ADM INISTRATION

April 22, 1981

Enclosed is a copy of my letter which was mailed to you on April 10.
Final plans are now being made to conduct thla study. I have not
heard from you. If you wish to participate, and I hope you will,
please answer "yes" and indicate the number of participants on the
enclosed card. If you cannot participate, please answer "no" and
indicate the number of students In your class.
I sincerely believe, and I hope you will agree, that the results of
this study will be of benefit to both of us.
Please mall the card so It will reach me by April 30. If you have
any questions, you may call me at 517/353-8676 between the hours of
9 a.m. and 2 p.m.
1 hope you and your students will be able to participate in this
study.
Sincerely

Annette Ryckman

Enclosures

MICHIGAN STATE U N IV E RSIT Y
COLLEGE OF BUSINESS

EAST LANSING • MICHIGAN • U U I

DEPARTM ENT O F BUSINESS LAW AND OFFICE ADM INISTRATION

As a former capscone teacher! I believe we have Che ideal learning environnenc for
integrating economics into the office education classroom. In a P o li o io a Contrtiaeion
f o r Bus in * a b and. E oonom io E d u c a tio n 1958—1978 document, it was stated that "business
education, more than other fields, deals with the very things that economics is all
about." Anne S. Daughtrey, author and business education leader, stresses the im­
portance of including economic concepts In block and simulation programs because it
is "vital to the preparation of students for office occupations in the future . "
Your help is needed in a study to assess the level of economic understanding of our
business education students.
Your participation in this assessment is requested by administering a 40 - minute
T e a t o f Eoonom io L i t e r a a y (TEE) to your vocational office education class(es) on a
date of your choice in the early part of May. You have been selected because you
have demonstrated educational leadership as a Vocational Office Block (VOB) Project
in-service participant. A packet will be provided including the Instruments, pencils,
and postage-paid return envelope.
I hope that you will be able to participate. As you know, the more scores included
In the study, the more meaningful the study.
The scores of your students will be
combined with the scores of the other students. The names of your students, your
name, and your school name will NOT be used as part of this study. YOU are the only
person who will receive the scores of your class in relation to the total scores from
the other VOB project participants in this study for use such as, information for
curriculum planning, workshops, in-service projects, or professional development.
Please inform your principal about your plan to BMasure the economic background of
your vocational office students because the principal will probablybe Interested in
the results.
Please complete and return the enclosed postage-paid card by April 17
the packet and general information.
Sincerely yours,
Annette Ryckman
Researcher

YV '
Ellis R. Thomas
Researcher's Advisor
—

-C

/

Robert P. Poland
VOB Project Director

—

to receive

APPENDIX B

154

MICHIGAN STATE UNIVERSITY
COLLEGE o r BUSMESS

BAST LANSING • IOCHICAN • 4M34

DEPARTMENT O f BUSINESS LAW AND O m CE ADMINISTRATION

TO:
FROM:

Annette Ryckman/J

VOB Teachers

DATE:

April 30. 1981

SUBJ:

Office Education Students
Economic Understandings Status

a

Thank you for indicating that you will participate in the TEL testing of
your students.
The TEL (Test of Economic Literacy) requires about AO minutes of testing
time. The instrument was designed as a power test rather than a speed
test. For your information, the eleventh-end twelfth-grade students who
were participants in the national 1977 TEL study and ranged near the
fiftieth percentile rankings, scored between 17 and 26 points out of the
possible 46 TEL questions.
After you have collected the test booklets and answer sheets, please place
them, along with your completed teacher questionnaire, in the enclosed
stamped, addressed envelope and return to me.
If you or your principal wish to repeat this test at a future date, you
may request the booklets, answer sheets, and the test guide from: The
Association of Michigan Economic Education Centers, X Executive Director,
BOA Department, 109 Olds Hall, Michigan State University, East Lansing,
MI 48824, or telephone 517/353-8676 or 355-0252.

P.S. I do not want individual names! If the names are on your student
answer sheets or if you code them, I will be happy to return all of your
answer sheets to YOU. Otherwise, I will mail you the findings of your
class as compared to the total classes tested. (I do not have a need to
look at names, codes, or class scores as I am only concerned with infor­
mation from the questionnaires and teat scores.)

M S U km Affinmtti m Attkm/Efrntl Of f I rli 11 I p 1 1iMim ll n

155

TEL TEST INFORMATION
GENERAL INFORMATION TO TEACHES
. The TEST OF ECONOMIC LITERACY haa b e e n d e s ig n e d to b e n e e d p r i m a r ily b y te a o h e r e .
. The TEL hae b e e n a d m in is te r e d t o many s t u d e n t g ro u p s th r o u g h o u t t h e U n ite d S t a t e s .
. The TEL i s p r i n t e d i n a r e u s a b le t e s t b o o k l e t u h ia h can t h e r e f o r e b e u s e d a g a in .
. The a n sw ers w i l l b e hand s c o r e d , so a n y r e g u l a r p e n c i l w i l l b e a c c e p ta b le .
MATERIALS
. T e s t b o o k l e t s , p e n c i l s ,- q u e s t io n n a i r e s f o r s t u d e n t s , q u e s t io n n a i r e f o r i n s t r u c t o r , and
a n sw e r s h e e t s f o r s t u d e n t s .
SPECIFIC DIRECTIONS
. P ass o u t t o t h e s t u d e n t s th e a n sw er s h e e t s a n d s t u d e n t q u e s t io n n a i r e s .
. P ass o u t th e t e s t b o o k le t s an d p e n c i l s .
. S a y t o th e s t u d e n t s ,
"THE TEST BOOKLETS SHOULD REMAIN FACE UP AND CLOSED UNTIL THE SIGNAL TO BEGIN I S GIVEN. "
And th e n sa y t o th e s t u d e n t s ,
"F IL L OUT THE APPROPRIATE INFORMATION IN TEE QUESTIONNAIRE. "
A f t e r e v e ry o n e hae r e c e i v e d a l l o f th e n e c e s s a r y m a te r i a ls a n d h a d s u f f i c i e n t
tim e t o c o m p le te th e q u e s t io n n a i r e ,
S a y t o th e s t u d e n t s ,
"READ THE DIRECTIONS TO YOURSELVES AS I REAP THEM ALOUD."
"DIRECTIONS.. . " (r e a d t h e d i r e c t i o n s o n th e f a c e o f t h e t e s t b o o k le t— any
r e g u l a r p e n c i l i s a c c e p ta b le )
A f t e r r e a d in g t h e d i r e c t i o n s t o t h e s t u d e n t s ,
Say,
"SAMPLE QUESTION 1 AND 2 ON THE FRONT COVER OF THE TEST BOOKLET GIVES
EXAMPLES OF A PROPERLY MARKED ANSWER. NOTICE THAT RESPONSE C ON QUESTION 1
AND RESPONSE A ON QUESTION 2 RAVE BEEN FILLED IN CLEARLY. WHEN YOU BEGIN
THE TEST, READ THE QUESTION CAREFULLY AND CHOOSE YOUR ANSWER. THEN, USE
YOUR PENCIL TO BLACKEN THE LETTERED SPACE ON THE ANSWER SHEET THAT CORRESPONDS
TO THE LETTER ON THE ANSWER YOU HAVE CROSEn T "
Then s a y ,
"WREN YOU FINISH THE TEST, GO BACK AND CHECK YOUR ANSWERS. I F YOU HAVE ANY
QUESTIONS, RAISE YOUR HAND NOW. NO QUESTIONS CONCERNING ANY ASPECT OF THE
TEST WILL BE ANSWERED AFTER THE TEST HAS BEGUN. BUT, IF YOUR PENCIL BREAKS
OR IF YOU DETECT A FAULTY BOOKLET OR ANSWER SHEET, RAISE YOUR HAND. "
A nsw er q u e s t i o n s , i f a n y , a n d th e n s a y ,
"YOU WILL HAVE 40 MINUTES FOR THE TEST.

BEGIN. "

156

TEST OF ECONOMIC LITERACY, FORM AQUESTIONNAIRE FOR THE OFFICE EDUCATION INSTRUCTOR OR ADMINISTRAXOR OF THE TEL TEST
1. Tour None
2. School Ni m
3. Do YOU wish to receive tha acoras of your atudancs Co compare with tha vocaClonal
office block (VOS)'total? (Your acudencs' acoraa are part of a cocal.)
______ No
Yea
la che daaa(aa) you are caatlng Included In tha Vocational-Technical Education
Service (VTES), Michigan Department of Education, funding aa a 14.0000 OE (office
education) code? (I.e. funding for vocationally ralaburaable or added coat type
of related or block daaa prograaa aueh aa ateno/clarlcal/aacratarlal/general office)
______ Yea
No
______ Unknown
5. la a courae In ECONOMICS currently being taught In your achool?
______ Yea
No
Unknown
6. If you answered "yea" to nunber 3, la a couraa in ECONOMICS currently a required
courae for atudenta In your achool?
______ Yea
No
______ Unknown
What daaalflcatlon or atudent enrollment alee la tha achool or center In which
you are caatlng?
______ 1,344+
Claaa A alte
349-675
Claaa C alee
_676-l,343 Claaa * alec
349 or laaa Claaa D alee
8. Would you Ilka to attend vorkahopa, aamlnare, or ln-eervlce prograaa either for
credit or non-cradlt to learn more about aathoda of Integrating economic concepta
Into your office education couraaa?
______ Yea
No
Undecided

157
STUDENT QUESTIONNAIRE FOR TEST OF ECONOMIC LITERACY, FORM ADlrectlon8: Please place a check ( y / ) mark or fill In the appropriate blanks.
1._______ Age
2.

_______ ____ Date of Birth
(m o n th /y e a r)

Grade Level

Sex:

Male

Female

Have you had or are you currently taking a course entitled ECONOMICS?
(An ECONOMICS c o u r s e i s a c o u r s e w it h a m a jo r fo c u s o n ec o n o m ics a t l e a s t
s i x w eeks i n l e n g t h a n d ta k e n i n g ra d e s 8 , 9 , 1 0 , 11, o r 1 2 . )

Yes
3.

No

If you answered "n o " to question 2 above, will you be taking a course
entitled ECONOMICS before high school graduation?
Yes
No
Unknown
Have you had any of the following titled courses?
Course area
Basic Business
_Marketing
_Consumer

(If yea, please check appropriate area.)

Examples
. g e n e r a l b u s i n e s s , e x p lo r in g b u s i n e s s , b u s i n e s s m anagem ent,
in tr o d u c tio n to b u s in e s s , o th e r :
. r e t a i l i n g , s a l e s , d i s t r i b u t i v e e d u c a tio n , o t h e r
.c o n su m e r e d u c a tio n , co n su m er e c o n o m ic s, o t h e r : "

What is the highest educational level achieved by your:
Father or
Guardian

Mother or
Guardian

_______
_______
_______
_______

_______
_______
_______
_______

Mucatlonal level
—
11Less than high achool diploma
High school graduate
Some college or additional education
College degree

What is the major occupational area of your:
Father or
Guardian

7.

Mother or
Guardian

occupational area
r----------Clerical
Crafts, Foremen, or
Operatives
Farmer
Homemaker
Professional orTechnical
Sales
Service
Other

Exmaple.
r 1
.b o o k k e e p e r , s e c r e t a r y , t y p i s t

.m ech a n ic , r e p a i r , c a r p e n t e r , c o n s t r u c t i o n ,
t r u c k d r i v e r , sh o p w o rk e r
.fa r m m anager, la b o r e r , fo re m a n
.m a n a g er o f own p e r s o n a l home a n d /o r f a m i l y
. e n g i n e e r , d o c to r , te a c h e r , n u r s e
. r e t a i l , o t h e r th a n r e t a i l
.a l e a n i n g , fo o d , h e a l t h , p e r s o n , p r o t e c t i v e
. p l e a s e s p e c i f y : _________________________

What is the approximate annual or yearly Income of your family?

(Please check one.)

Under $10,000 a year
$10,000 to $19,999
$20,000 to $29,999
$30,000 or more
unknown
8. What Is the ZIP CODE of your HOME mailing address?
ZIP CODE
Thank you.

158

TEST OF ECONOMIC LITERACY

SAMPLES

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159

A
TEST OF ECONOMIC LITERACY

D irections
1.

Please fill out the Information requested on the answer sheet before beginning your test.

2. When marking your answer sheet, use only a regular No. 2 pencil. DO NOT USE A
BALLPOINT PEN. Do not make any stray marks on the answer sheet. If you make a mistake, erase
completely the answer you wish to change.
3. This test is designed to measure your understanding of economics. Not all students will have
taken a formal course in economics, but most have learned something about the subject in their
regular courses, through reading, listening to the radio, or watching television. These questions will
measure how well you understand the principles of economics and'the way our economy operates.
It is probable that you will not know the answers to some questions. However, you should answer
every question by marking what you think is the best choice, using the information you do have to
select your answer. Work at a comfortable speed, but do not spend too much time on any one item.
The test consists of forty-six questions or incomplete statements, for each of which you are to
choose the one best answer. Even though in soma Instances more than one answer may appear to
be correct, your task is to choose the best answer.

Sample Question 1
In our economy, income is usually received in the form of
A.
B.
C.
D.

Sample of Answer Sheet

•• ® ® t @

basic necessilies.
services.
money.
wealth.

Sample Question 2
The federal government exercises the closest control over
A.
B.
C.
D.

2. (0

@

©

©

banking and money.
high school education
food distribution.
oil companies.
Do not turn the page and begin the test until you are told to do so.

c Copyright 1976. .iomi Councu on Econom c Educevnr. No ow i of tret lest m ay be reproduced «nmou> tne wmtteo peem**ron of mo Jcant Councd on E eonem c E A rta lc n *212 Avenue
o' tn« Am oncta Now V on Nv 10036
JC E E C h o c k lial N o. 268

160

TEST OF
ECONOMIC LITERACY
Form A

MAKE NO MARKS IN THIS BOOKLET. MARK YOUR ANSWERS ON THE ANSWER SHEET
PROVIDED. USE PENCIL ONLY.

1.

Three major factors of production are land, labor, and capital. Which of the fallowing groups best illustrates
these factors?
A. Rent, workers, and money.
B. Oil. luxi drivers, and bonds.
C. Iron ore. clerks, and trucks.
D. Farmers, investors, and manufacturers.

2.

What is meant by the statement that every economic system (such as tradition, command, or market
economy) faces the fact of scarcity?
A. There are not enough productive resources to satisfy all wants of a society.
B; Every young society faces scarcity, but older economies overcoinc this problem.
C . There are times when some products can be had only by paying high prices.
D. All economies have depressions during which scarcities exist.

3.

The opportunity cost of a new public high school is the
A.
B.
C.
D.

4.

Which of the following questions is faced by a l l economic systems (i.e., tradition, command and market)?
A.
B.
C.
D.

5.

How will corporations be organized?
How can markets be kept competitive?
What goods and services will be produced?
How will governments protect private property?

In a market economy, the purpose of profits is to
A.
B.
C.
D.

6.

money cost of the new building.
necessary increase in the annual tax rate.
other desirable economic goods that must be given up to build the school.
cost of constructing it now as opposed to the cost of a new school at a later dale.

get businesses to act in a socially responsible manner.
persuade businesses to produce what consumers demand.
provide funds to pay workers better wages.
redistribute income from poor to rich.

Which of the following is the most essential for a market economy?

A. Functioning labor unions.
B. Good government regulation.
C . Active competition in the marketplace.
D. Responsible action by business leaders.

161

7.

Specialization and exchange within a nation or between nationi it likely to have which of the following
effects?
A.
B.
C.
D.

8.

Within a market economy a coastal state harvests a great quantity of fish; an inland state has a productive beef
cattle industry. If exchanges of fish and beef take place between these states
A.
B.
C.
D.

9.

the
the
the
the

supply of the factor.
supply of other factors of production.
demand for other factors of production.
demand for the product or products which it helps produce.

In a market economy, the public interest is served even when individuals pursue their own private economic
goals, because of
A.
B.
C.
D.

13.

Lack of valuable productive services to sell.
Discrimination against nonunion employees.
Unwillingness to work.
Progressive tax rates.

The demand for a factor of production depends largely on
A.
B.
C.
D.

12.

A decrease in rents and a decrease in the supply of housing.
An increase in rents, perhaps followed later by an increase in the supply of housing.
An increase in the demand for housing, followed by a decrease in the supply of housing.
No change in rents, since price controls are usually set where supply and demand intellect.

Of the following which is the most general cause of low individual incomes in the United States?
A.
B.
C.
D.

11.

one cannot determine gains or losses from the given information.
one state gains at the expense of the other.
both states lose..
both states gain.

Suppose a large city is investigating the elimination of rent controls on housing at a time when the vacancy
rate is extremely low—only I % of all apartments in the city are vacant. Which of the following is most likely
to occur if rent controls are eliminated?
A.
B.
C.
D.

10.

All costs of production will rise.
More goods and services can be produced.
The danger of economic instability is reduced.
The independence of both nations and individuals is increased.

the operation of competitive markets.
the social responsibility of business leaders.
careful planning and coordinadon of market activity.
individuals who understand what is in the public interest.

If consumers are to exercise their freedom of choice wisely in a market economy, they mutt
A.
B.
C.
D.

know where and when products are produced.
know the prices of alternative products available.
know whether a product was produced by a monopolist.
have sufficient income to permit them to purchase whatever they choose.

3

162

14.

Teen Power, a teenage organization, proposed that the minimum wage for teens should be increased. What
effect would this increase most likely have on teen wages and employment in a market economy?
A.
B.
C.
D.

15.

According to the “ law of supply and demand," if twice as many heads of lettuce were grown this year
because of good weather as were grown last year
A.
B.
C.
0.

16.

the supply of lettuce would stay the same this year.
the demand for lettuce would go down this year.
the price of lettuce would go down this year.
the price of lettuce would go up this year.

The price of shoes is likely to be increased by
A.
B.
C.
D.

17.

Wage rates would go up and teen employment would go up.
Wage rates would go down and teen employment would go up.
Wage rates would go up and teen employment would go down.
Wage rates would go up and teen employment would stay the same.

new machines reducing the cost of shoe production.
more capital investment by producers.
a decrease in the demand for shoes.
a decrease in the supply of shoes.

Assume that the demand increases for bread produced by many competitive firms. The resulting rise in the
price of bread will usually lead to
*
A.
B.
C.
D.

mote being produced.
less being produced.
no change in production.
elimination of inefficient businesses from the market.

Questions 18 and 19 are based on the following table.
State Tax Table
Income

$ 0-1000
$1001-2000
$2001-3000
$3001-4000
18.

Percentage
Rate

Tax Amount
Maximum

Minimum

0
10
20
30

0
$ 200
$ 600
$1200
$

$ 0
$100
$400

$900

The tax in the table above is a
A.
B.
C.
D.

proportional income tax.
progressive income tax.
regressive income tax.
fixed income tax.

19. Using the information in the table above, we know that as income increases the
A.
B.
C.
D.

increases and the amouni of lax increases.
increases and the amount of tax.decreases.
decreases and the amouni of tax increases.
decreases and the amount of tax decreases.

4

r a te

of taxation

163

20.

You read Ihe following headline: “ COFFEE GROWERS FORM MONOPOLY.” How will Ihe new coffee
monopoly most likely differ from a highly competitive coffee growing industry?
A.
B.
C.
D.

21.

If you saw a newspaper headline that read, “ ACME WIDGET CORPORATION RAISES PRICES; REST
OF WIDGET INDUSTRY EXPECTED TO FOLLOW." you would know that Acme Widget Corporation
was most likely to be in an industry with
A.
B.
C.
Di

22.

Profits in the coffee industry will now be certain.
The coffee growers will increase their use of capital goods.
The coffee growers will increase output and hire more workers.
There will be less incentive for the coffee growers to be efficient.

one seller.
few sellers.
many sellers.
total regulation.

The supply of a product increases at the same time the demand for it falls. In the absence of other changes its
price
A.
B.
C.
D.

cannot be determined.
will stay the same.
will rise
will fall.

Questions 23 and 24 are based on the following information:

23.

It is highly unlikely that private business firms would build and operate the plants and sell their services
directly to individual residents of the Central City area because
A. the cost of operating the plants would be too great.
B. people are unlikely to be willing to pay for smog-free air.
C . it would be less costly for the government to build and operate the plants than for private business firms to
do so.
D. it would probably be impossible to provide smog-free air to those who are willing to pay for it while
withholding it from those who refuse to pay.

24. Suppose that the government of Central City were to build and operate the air-purification plants. From the
standpoint of achieving efficiency in the allocation of economic resources, which of the following taxes
should be increased to provide the additional tax revenues needed to finance the operation of the airpurification plants?
A.
B.
C.
D.

Motor vehicle fuel.
General sales.
Property.
Income.

25. The total output of the economy is bought by which of the following three large groups of spenders?
A.
B.
C.
D.

Farmers, laborers, and householders.
Corporations, households, and investors.
Investors, speculators, and manufacturers.
Consumers, business firms, and governments.

5

164

26.

The best single measure of the total economic output in the United States is the
A.
B.
C.
D.

consumer price index
gross national product.
total amount of take-home pay.
index of industrial production.

Questions 27, 28, and 29 are based on the following graphs.
PARKLAND GRAPHS
Unemployment
Rate (%)

rju)^iAO.Njoo\oo

I40j

200

190
180
170
160

130
120

ISO

no!

140
130
120
110

100 '

1I
2 3 4
Year
27.

Years
Years
Years
Years

1-2.
2-3.
3-4.
4-5.

Years 1-2.
Years 2-3.
Years 3-4.
Years 4-5.

What is the economic situation and the most appropriate monetary and fiscal policies during years 1-2?
A.
B.
C.
D.

30.

Year

Parkland had an increase in output with a relatively low inflation rate during which period?
A.
B.
C.
D.

29.

Year

Parkland had both rising unemployment and a high rate of inflation during which period?
A.
B.
C.
D.

28.

Real Gross
National Product
(billions of dollars)

Consumer
Price Index
(Year I - 100)

Unemployment is falling; a budget deficit and/or easy money policy is needed.
The economy is in a recession; a budget deficit and/or easy money policy is needed.
Inflation continues and accelerates; a budget surplus and/or tight money policy is needed.
Unemployment is rising while inflation accelerates; a budget surplus and/or easy money policy is
needed.

Which of the following groups is typically hurt the most by unexpected inflation?
A.
B.
C.
D.

Fanners.
Debtors.
Lenders.
Manufacturers.

6

165

31.

The commercial banking system creates money when banks
A.
B.
C.
D.

32.

The functions of money are to serve as
A.
B.
C.
D.

33.

socially responsible business leaders.
high output per worker.
actions of government.
minimum wage laws.

Increasing the federal budget surplus is more desirable in a period of
A.
B.
C.
D.

38.

increase investment.
increase consumption.
use the market system.
use central economic planning.

In a market economy high wages depend largely upon
A.
B.
C.
D.

37.

hold down the government debt.
increase the government debt.
fight unemployment.
fight inflation.

To experience economic growth a developing country must
A.
B.
C.
D.

36.

the quantity and quality of labor, capital, and natural resources.
business demand for final goods and services.
government regulations and spending.
the amount of money in circulation.

The Federal Reserve Board generally tries to increase the money supply when it wants to
A.
B.
C.
D.

35.

a determinant o f capital spending and aggregate supply.
a unit of account, a medium of exchange, and a store of value.
a determinant of investment, consumption, and aggregate demand.
a stabilizing force, a means of income redistribution, and a resource allocator.

The limit of an economy's real output at any time is set by
A.
B.
C.
D.

34.

sell bonds to the public.
extend loans to the public.
increase loans to the Federal Reserve System.
purchase bonds from the Federal Reserve System.

inflation.
depression.
falling prices.
mass unemployment.

Often an economy operates at less than full employment. This is most likely to occur
A.
B.
C.
D.

whenever competition is intense.
when total spending is inadequate.
when there is excess demand inflation.
when there is a scarcity of unskilled labor. .

7

166

39.

If total demand declines relative to the productive capacity of the economy, which of the following is likely
to occur?
A.
B.
C.
D.

40.

Inflution.
Increased employment.
A slower growth rate.
A government budget surplus.

If, when there is full employment, the federal government increases its spending without increasing its lax
revenues, generally

A. an increase in unemployment will occur.
B. a serious depression will occur.
C. the national debt will decrease.
D. inflation will occur
41.

Increased taxation is the preferred method of financing government spending when
A.
B.
C.
D.

42.

the interest rate is low.
corporate profits are low.
the economy is experiencing inflation.
the economy is experiencing a recession.

Which of the following four statistics is generally accepted as the best measure of the economic growth of a
nation?

A. Total employment.
B. Index of stock prices.
G. Money income per capita.
D. Real income per capita.
43.

For most nations, the reduction of tariffs would probably

A. force some workers out of jobs in protected industries.
B. lessen job opportunities in export industries.
C. lower the average level of living.
D. injure most fanners
44.

One advantage of the corporate form of business organization is that

A. corporations do not pay taxes.
B. stockholders make larger profits.
C. stockholders have limited liability.
D. corporations are larger than other forms of business.
45. A national system of free medical care for the aged poor is established. The system is paid for by an increase
in the income tax. These actions promote one economic goal, but work against another. Specifically, these
actions are likely to
A.
B.
C.
D.

reduce security but promote efficiency.
reduce equity but promote efficiency.
reduce stability but promote growth.
reduce freedom but promote equity.

46. Labor unions in the United States have

A. strengthened the bargaining position of unionized workers in relation to their employers.
B. greatly increased the wages of union workers compared to non-union workers.
C. organized a majority of the American labor force.
D. increased competition in the larbor market.

JOINT COUNCIL ON ECONOMIC EDUCATION
1212 AVENUE OF THE AMERICAS / NEW VORK. NEW YORK 1003* / (212) 8 * 2 4 1 * 0

APPENDIX C

167

Aggregate Statistics for the TEL,
Norming Sample, Spring 1977

Mean
Standard deviation
N
Standard error of measurement
(S.E.M.)
Cronbach Alpha
Per cent with economics

Form A

Form B

21.59
8.52
4,192

22.89
8.43
4,468

3.02
0.875
55

3.01
0.872
58

Soper, John C. Test of Economic Literacy Discussion
Guide and Rationale. New York: Joint Council on
Economic Education, 1979, p. 11.

APPENDIX D

168

Content Categories for the TEL
A.

The Basic Economic Problem
1
2
3
4
5

B.

Economic Systems
6
7
8
9
10
11

C.

Nature and types of economic systems
Economic incentives
Specialization, comparative advantage, and the di­
vision of labor
Voluntary exchange
Interdependence
Government intervention and regulation

Microeconomics: Resource Allocation and Income
Distribution
12
13
14
15
16

D.

Economic wants
Productive resources
Scarcity and choices
Opportunity costs and trade-offs
Marginalism and equilibrium

Markets, supply and demand
The price mechanism
Competition and market structure
"Market failures” : information costs, resource im­
mobility, externalities, etc.
Income distribution and government redistribution

Macroeconomics: Economic Stability and Growth
17
16
19
20
21
22
23

Aggregate supply and productive capacity
Aggregate demand: unemployment and inflation
Real and money income; price level changes
Money and monetary policy
Fiscal policy: taxes, expenditures, and transfers
Economic growth
Saving, investment, and productivity

E. The World Economy
24

International economics

F.

Economic Institutions

G.

Concepts for Evaluating Economic Actions and
Policies
Economic goals: freedom, economic efficiency,
equity, security, price stability, full
employment, and growth
Trade-offs among goals

Soper, John C. Test of Economic Literacy Discussion
Guide and Rationale" New York: Joint Council on
Economic Education, 1979, p. 3.

APPENDIX E

169

Five-Level Cognitive Taxonomy for the Test o f Economic Literacy
Level

Objective

Operative Verbs

Emphasis

1
Knowledge

To show that the student
knows

list, recall, remember, ten, define,
identify, label, locate, recognize

recognition and recall—ability to
remember facts in a form d o se to
the way they were first presented

II
Comprehension

To show that the student
understands

explain, Mustrate, describe,
summarize, interpret, expand,
convert, measure, understand,
translate, extrapolate

grasp the meaning and intent of
Information—abbty to ten or
translate in own words

III
Application

To show that the student
can use what Is learned

demonstrate, apply, uae, construct,
find solutions, coiect information,
perform, solve, use abstractions,
choose appropriate procedures

use of Information—ability to apply
learning to new situations and
reeMHe circumstances

IV
Analysis

To show that the student
perceives and can pick
out the most important
points in materisl
presented

analyze, debate, differentiate,
generaNze, conclude, distinguish,
organize, determine

reasoning—ability to break down
information into component parts
and to detect relationships of one
part to another and to the whole

V*
Evaluation

To show that the student
can judge and evaluate
ideas, information,
solutions, procedures,
and goals

compare, decide, judge, evaluate,
conclude, contrast, appraise,
develop criteria

criteria or standards for evaluation
and judgment—ability to make
judgments based on criteria or
standards

S o u rc e :
Adapted from Sally R. Campbell, Consumer Education in an Age o f Adaptation (Chicaoo: Sears, Roebuck, 1971).
p. 10.
‘This is ectualty the sixth level of Bloom's originsl taxonomy. We decided to delete the fifth level ("Synthesis") Irom the original
schema, as it does not appear to lit in with what is normally taught In the economics classroom. In Bloom's formulation, the
emphasis in the "synthesis" category is on originality and creativity.

Soper, John C. Test of Economic Literacy Discussion
Guide and Rationale. New York: Joint Council on
Economic Education, 1979, p. 4.

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