Principles Course Assessment, Accreditation, and the Depreciation of Economic Knowledge

In this article, the authors report on the results of an assessment of economic knowledge among students who are entering upper level business study. Using the standardized Test of Understanding of College Economics, they found small but statistically significant effects of economic knowledge in upper level business grades. The standardized test score proved to be a statistically significant predictor even when extensive variables from student records were added to the predicting equation. However, the authors show that the standardized test score is not likely to be a cost-effective supplement for admissions decisions to upper level business study.