AN EXAMINATION OF ECONOMICS LITERACY LEVEL OF SOCIAL STUDIES TEACHERS CANDIDATE IN SECONDARY SCHOOL

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

Basically a human being is a biological entity alongside being a social one. The ultimate goal of a human being is to survive and continue his existence. In order to survive, some basic needs such as food, water, clothing, housing and protection should be met. Humans make an effort to meet these needs through their everyday decisions and actions. It is these efforts of mankind that underlie the origins of the economy (Agnello & Lucel, 2008: 254).  Accordingly, the goal of economics is to search for reasons for the imbalance and inequality between the unlimited needs that change, vary and grow all the time and the scarce of resources for meeting these needs and to produce solutions and come up with measures and remedies that may help to reduce or even eliminate this imbalance (Yiğitbaşı, 2012: 3). It is hard to visualize a society without economy or vice versa, so it can be asserted that economics began and continued with mankind. Studies on economy have increased in number as people have started to understand the necessity of economics education for an effective citizenship and as the interest in this education have grown with the increased knowledge of economics. This support today has increased the importance of economic literacy among the multiple literacies. Economic literacy is supposed to equip students with economic knowledge, skills and attitudes adequate enough to make better decisions in the future and to better understand their country and the world as responsible, hardworking and honest citizens and in their roles as producers, consumers, employees and investors (Akhan, 2010). Economic literacy is an important area that individuals should learn and know about as a citizenship and as the participants of worldwide economies that have been increasingly dependent on each other (Darvin, 2013: 7). Economic literacy is our ability to write and read about economic conditions that affect our material well-being. Economic literacy is our ability to understand, discuss and respond to the events that shape our economic environment. It is essential not only to the economists but to everyone from child to adult (Jacob, 2011). Today’s economic conditions require that economics education be included in school curriculum to make students successful in their life. Young people can understand global economy only when they have learned economic subjects and the steps taken on this way ensure success for the economic system of their country. It will bring future citizens an advantage in all areas to enhance thinking skills of young people in economic issues besides increasing their economic literacy in other areas (Schug & Lopus, 2008: 360); because every human being is supposed to be a producer and a consumer and also to follow the economic policy of the country no matter what socioeconomic or socio cultural environment s/he is in. Economic literacy, for that reason, is crucial to the young people of the 21st century. There are important factors at schools that affect economic literacy; one of them is that teachers have a good knowledge in the field and they can provide basic knowledge of economics for the students. Yet, the academic staff who train teachers playing a key role in teaching economic subjects to primary school students are not experienced enough in the development and application of economics curriculum and in the teaching methods, as well. For that reason, the knowledge of economics of primary school teachers could remain ineffective in running a satisfying economics education program (Vargha, 2010: 28). Studies show that the economic knowledge of teachers has a direct effect on the performance of students. In this sense, teachers firstly convince their students that the economics education is necessary at the primary education level. Besides providing knowledge of economics, teachers need to show students how to put this knowledge into practice and contribute to the development of their ability to take economic-based decisions (Meszaros & Suiter, 2009; Riabova, 2012: 34). The results of the Morgan’s study (2013) on the relationship between teacher training and students’ understanding of economics at primary education level also indicate the importance of teacher training in economic subjects. Studies investigating the competencies of students educated by teachers who have participated in economic programs indicated that these students have a better cognitive ability to make sense of economic concepts compared to those who study economics with teachers lacking experiences of such programs. For instance, Becker (1975) reported that levels of students taught by teachers who have received economics education were higher than the levels of those who were educated by teachers with no economics education background. Similarly, Highsmith, Thornton and Vredeveld (2010) found in their study a strong positive connection between student performance and teacher training in economics. Walstad (1978) reported greater impact of seminars on teachers’ understanding of economics. Moreover, materials for economy-based problem solving skills provided by a well-trained teacher help primary school students to be better in understanding economy and developing an attitude towards economy and in problem-solving skill and developing an attitude towards this skill (Cited in: Racich, 2011). Thornton (2010) indicates social studies teachers as the guards of the curriculum. While teaching the objectives within the curriculum, they are influenced by their value judgments, beliefs, capabilities or talents concerning teaching. Whether a teacher’s keeping the door open, half open or completely closed affects student’s learning directly while they are teaching the curriculum subjects. Our expectancy is that social studies teacher candidates open their doors willingly and gladly in their classes to teach economics when they become the guards of the curriculum (Cited in Anthony, Smith and Miller, 2014:1). If teacher candidates have low economic literacy and have no self-confidence in teaching economics subjects during pre-service period, this will prevent them from making their students acquire economics skills in social studies classes (McGowan, 2009; cited in: Anthony, Smith and Miller, 2014). It is against this backdrop that the study an examination of economics literacy level of social study teachers’ candidate in secondary school is examined.

STATEMENT OF PROBLEM

According to Salemi (2010) when individuals are asked about basic economic concept, most of them give wrong answer. In reality, as consumers each individual are exposed to basic economic problems in everyday life. However, majority of the consumers do not understand basic economic concept such as why government raise price of certain goods, relationship between inflation and interest rate and any issue related to current activities. Although government has taken various steps to stabilize price, government’s action will not be successful if without co operation of consumers with economic information. Individuals with no economic knowledge or literacy have the tendency to have wrong decision syndrome. Unfortunately, many students do not relate the importance of economic literacy with economic decision in life. As such, teachers who are educated students are perceived to be able to make wise decision in solving economic based problem, either it involves professional or personal life.  According to Rivlin (2012), without knowledge regarding how economic activities operate, understanding of terms and concept of basic economy, people will be left behind and have the tendency to make wrong decision. It is against this backdrop that the study an examination of economics literacy level of social study teachers’ candidate in secondary school is examined.

AIMS OF THE STUDY

The major aim of the study is to examine economics literacy level of social study teachers’ candidate in secondary school. Other specific objectives of the study include;

1. To examine the economic literacy levels of social studies teachers candidate
2. To examine the factors affecting economic literacy of social studies teachers candidate
3. To examine the social impacts of economic literacy on social studies teachers candidate
4. To examine the economic literacy education of social studies teachers candidate
5. To examine the relationship between economic literacy level and social studies teachers’ candidate.
6. To examine the importance of economic literacy of social studies teachers candidate.

RESEARCH QUESTIONS

1. What are the economic literacy levels of social studies teachers’ candidate?
2. What are the factors affecting economic literacy of social studies teachers candidate?
3. What are the social impacts of economic literacy on social studies teachers’ candidate?
4. What is the economic literacy education of social studies teachers’ candidate?
5. What is the relationship between economic literacy level and social studies teachers’ candidate?
6. What is the importance of economic literacy of social studies teachers’ candidate?

RESEARCH HYPOTHESES

Hypothesis 1

1. : There are is no significant social impact of economic literacy on social studies teachers’ candidate.
2. : There is a significant social impact of economic literacy on social studies teachers’ candidate.

Hypothesis 2

H0: There is no significant relationship between economic literacy level and social studies teachers’ candidate.

H1: There is a significant relationship between economic literacy level and social studies teachers’ candidate.

SIGNIFICANCE OF THE STUDY

The significance of the study is it informs educational policymakers, curriculum directors, and state legislatures on economic training, curriculum evaluation, and systemic change to better meet the demand for an economically literate citizenry. The research informs policy makers regarding the formal education requirements for teachers responsible for economic content instruction. This study would also be of immense benefit to students and scholars who are interested in developing further studies on the subject matter.

SCOPE AND LIMITATION OF THE STUDY

The study is restricted to an examination of economics literacy level of social study teachers’ candidate in secondary school.

LIMITATION OF THE STUDY

Financial constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview)

Time constraint: The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

OPERATIONAL DEFINITION OF TERMS

Economic Fundamentals – basic elements of economic thinking, scarcity of resources, unlimited wants versus limited resources, trade-offs, opportunity cost, productivity of resources, economic systems, economic institutions, people respond to incentives, exchange, money as a facilitator of exchange, decision making on the margin, cost benefit analysis.

Economic Literacy – the ability to apply the economic way of thinking, economics principles and methods in daily life experiences

International Economics – international trade and finance, specialization and comparative advantage, why nations trade, exchange rates

Macroeconomics – measuring health of the economy, gross domestic product, unemployment, inflation and deflation, business cycle, monetary policy, fiscal policy, government policies to assure economic growth, unintended consequences of policy, big picture of the economy

Microeconomics – study of interaction of individual units in the economy choices under conditions of scarcity, how individuals and individual market choices affect prices and quantities, evaluation of competition within markets.