In the May issue of “The Wisconsin Policy Research Institute,” Dr. Scott Niederjohn makes the case for Wisconsin schools to improve in the subject areas of economics and personal finance. He notes only 25% of Wisconsin schools require economics, and only 21 states require economics.
The report mentions the results of Wisconsin students on a nationally normed Test of Economic Literacy developed by the Council for Economic Education. The students taking the test scored a 14.5 of the 30 questions or 48%. However, more interesting than the test results were the students understanding of the economic reality.
Ø Business firms wish to sell their products at high prices. Households wish to buy products at low prices. In a market economy, this conflict of interest is resolved by:
a. Lawsuits…5% chose this incorrect answer
b. Government…61% chose this incorrect answer
c. Competition…11% chose this correct answer
d. Collective bargaining…13% chose this incorrect answer
Ø A basic role of entrepreneurs in the economy is to:
a. Tell government what new products to produce and sell…
56% chose this incorrect answer
56% chose this incorrect answer
b. Take the risks associated with starting a new business…
14% chose this correct answer
c. Buy and sell the common stocks of corporations…
16% chose this incorrect answer
d. Limit the liability of investors in new business…
14% chose this incorrect answer
14% chose this incorrect answer
Clearly, Wisconsin students do not comprehend the very basics of a market economy. This is why free market economics is a required Upper School course at Brookfield Academy and why BAME (Brookfield Academy Market Economy) is part of our Middle School curriculum.
Brookfield Academy students do graduate with a strong foundation in a working knowledge of the economy.
To read more about the report go to www.wpri.org.
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