Abstract
A limited number of studies have focused on formative assessment in higher education. This paper examines the effectiveness of applied exercises with a feedback mechanism as a formative assessment technique in an economics principles course. The exercises did correspond to overall improvements in pre and post test scores. However, the regression analysis suggests that the applied exercises are not the most effective way to provide feedback to students about their understanding of a targeted topic but that there are other benefits, such as increased motivation and getting to know other students in the class, which lead to overall improvement in the course.
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