Testing for Depth of Understanding in Economics Using Essay Questions

<italic>Abstract</italic>: The essay test has great potential to assess the higher levels of student understanding of economics. The problem is that most instructors fail to exploit the significant advantage of this testing method and to avoid its pitfalls. The author highlights the advantages and pitfalls to essay testing in economics and gives instructors many practical examples and suggestions for improving the quality of essay questions. The general conclusion is that essay testing requires more work than is generally expected by economics instructors, but this commitment needs to be made if essay tests are to be used as an effective and reliable measure for depth of understanding in economics.