The Cost of Economic Literacy: How Well Does a Literacy-Targeted Principles of Economics Course Prepare Students for Intermediate Theory Courses?

Abstract

In a typical economics principles course, students encounter a large number of concepts. In a literacy-targeted course, students study a “short list” of concepts that they can use for the rest of their lives. While a literacy-targeted principles course provides better education for nonmajors, it may place economic majors at a disadvantage in postprinciples courses. In this article, the authors test whether students who completed a literacy-targeted principles course earned intermediate theory grades as high as those of students who completed a traditional principles course. The authors’ findings indicate that students who complete a literacy-targeted principles course perform no worse in intermediate theory courses than students who complete a traditional principles course.