What Does the NAEP Economics Assessment Measure?

NAEP measured the economics knowledge and skills of students in grade 12 for the first time in 2006. According to the NAEP economics framework (667K PDF), developed by the National Assessment Governing Board, economic literacy is defined as the ability to identify, analyze, and evaluate the consequences of individual decisions and public policy. Economic literacy includes an understanding of

• the fundamental constraints imposed by limited resources, the resulting choices people have to make, and the trade-offs they face;
• how economies and markets work and how people function within them; and
• the benefits and costs of economic interaction and interdependence among people and nations.

The economics assessment measures and will report results for three content areas.

• the Market Economy,
• the National Economy, and
• the International Economy.

Within each of the content areas, questions are designed to assess economics in three cognitive categories.

• Knowing,
• Applying, and
• Reasoning.

Recognizing that students acquire economics knowledge and skills inside and outside of school, the framework requests that questions be set in various contexts.

• Individual or Household questions focus on topics related to personal finance.
• Business questions relate to entrepreneurs, workers, producers, and investors.
• Public includes questions about government, policy, citizenship, and domestic and international organizations.

The amount of assessment time to be devoted to each of the three components is specified in the framework.

Explore Sample Questions booklets for the 2006 economics assessment.

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Last updated 11 May 2007 (JM)