Essay versus Multiple Choice Exams; An Experiment in the Principles of Macroeconomics Course

Examining the impact of test type in Principles of Macroeconomics via two-stage estimation of an education production function, I find that students do better on a post–course TUCE when they take multiple choice exams throughout the semester instead of taking essay exams. The type of test, however, does not impact the student's attitude toward economics or the decision to complete the course.