THE TEACHING ECONOMIST - William A. McEachern 
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Issue 16, Fall 1998
William A. McEachern, Editor
Grapevine
Patrick B. O'Neill of the University of North Dakota studied the impact of test types on student attitudes and achievement in a principles of macroeconomics course. One large section was given essay exams during the semester and another large section was given multiple-choice exams. At the beginning and end of the course, students took the TUCE III exam in macroeconomics and the Attitude Toward Economics survey. Based on a sample of 145 students, Professor O'Neill found that the type of test administered during the term did not affect student attitudes toward economics but did influence TUCE results. Students given multiple-choice exams during the semester did significantly better at the end when achievement was measured by the TUCE. When achievement was measured by the course grade, there were no differences based on the type of test. His findings raise questions about the usefulness of TUCE results as a measure of achievement across colleges and across courses where different types of exams are administered. His paper, "Does Test Type Matter? An Experiment in the Principles of Macroeconomics Course," was presented last July at the Western Economic Association Annual Conference.
Michael Nieswiadomy of the University of North Texas in Denton investigated the rankings of economics majors among students taking the Law School Admission Test in 1991-92 and 1994-95. It turns out that, among the 14 major disciplines with more than 2,000 students taking the exam, economics majors received the highest average score on the exam in both years. His study, "LSAT Scores of Economics Majors," will be published this fall in the Journal of Economic Education. Current and recent issues of that journal are available at http://www.indiana.edu:80/~econed.
Duane B. Oyen of the University of Wisconsin-Eau Claire examined the recent decline in economics degrees awarded by U.S. institutions from their 1989-90 peak of 29,163 to 22,007 in 1994-95, a drop of 24.5%. Economics degrees awarded to men declined by 7,156, or 25.1%, and those awarded to women declined 2,116, or 23.3%. According to the Digest of Education Statistics, undergraduate degrees in total increased 10.3% between 1989-90 and 1994-95. The top gainers in relative and absolute terms during the period were agriculture/natural resources (+63.7 %), protective services (+57.3%), biology/life sciences (+50.5%), sociology (+42.7%), health professionals (+36.6%), multi/interdisciplinary studies (+35.1%), psychology (+33.6%), and "other social sciences," which include anthropology, geography, and international relations, (+28.0%). The top decliners were marketing (-27.0%), "other business" (-27.0%), economics (-24.5%), finance (-21.2%), computer science (-10.5), architecture (-6.9%), mathematics (-5.4%), and engineering (-4.2%). The trend is away from majors that are more analytical. Economics, when viewed as a social science, was sharply lower than other disciplines such as sociology, psychology, and other social sciences. When viewed as a business discipline, the decline in economics is more in line with drops in marketing, finance, and "other business". Professor Oyen presented his findings in a paper entitled "The Recent Decline in Economics Degrees Revisited Again" last July at the Western Economic Association Annual Conference.
But the decline in economics majors may have halted or even reversed, according to John J. Siegfried of Vanderbilt University. Using a sample of 172 colleges and universities, he found sharp declines in economics majors of 14%, 9%, and 10% in 1992, 1994, and 1995. In 1996, the decline slowed to 3%. Throughout the decline, women received about 29% of degrees awarded in economics. The percentage loss of economics majors at public colleges and universities was more than twice that at private institutions (38% versus 14%). In 1997, based on surveying a sub-sample of 111 of the 172 colleges and universities, the number of majors increased 4 percent. At private institutions the turnaround began in 1996 with an increase of 4%, followed by an increase of 5% in 1997. At selective liberal arts colleges, the number of economics majors increased by 23% between 1995 and 1997. At public institutions, the first increase was in 1997, and then it was a mere 2.6%, hardly yet the makings of a solid reversal. Professor Siegfried reports his findings in "Trends in Undergraduate Economics Degrees: A 1996-97 Update," Journal of Economic Education, Summer 1998, pp. 285-88. Again, current and recent issues of that journal are available at http://www.indiana.edu:80/~econed.
Eric K. Steger of East Central University in Ada, Oklahoma, explains to students that transaction costs are those costs associated with gathering and processing information regarding prices, product availability and the like. He points out that information about many products and services is now just a few mouse clicks away on the Internet, thus reducing transaction costs. Since the Internet has increased competition, consumers have an opportunity to buy products and services at lower prices. Incidentally, a recent article in the Wall Street Journal relates how people are using the Internet to secure more competitive salaries. "In a world where information is power, salary negotiations have long been greatly imbalanced. But the Internet is changing that, as burgeoning numbers of Web sites offer salary surveys, job listings with specified pay levels and even customized compensation analysis" ( see Joann Lublin, "Internet Provides the Means to Check Competing Salaries," WSJ, 22 Sept. 1998).
Roberta Edgecomb Robb of Brock University in St. Catherines, Ontario, and A. Leslie Robb of McMaster University in Hamilton, Ontario, found no evidence that the gender of the instructor has any affect on performance in introductory microeconomics or on the probability that students will continue in economics. They did find that, after controlling for measured ability and background, male students did better in the course than female students. Fewer female students continued in economics. Their study, entitled "Gender and the Study of Economics: The Role of Gender of the Instructor," will be published this winter in the Journal of Economic Education.