On the Relationship between Economic Competence and the Individual Level of Agreement with Market Economy

A series of studies in several countries tested the economic understanding of people, particularly students. The performance of the subjects is typically conceived as showing "deficits". These alleged deficits seem to correspond with scepticism towards market economy. Better test scores in general correlate with higher appraisal of market society. Could therefore a better understanding influence the attitudes towards phenomena of economic life, like competition, unequal income distribution and other characteristics of market economy? This paper identifies different factors influencing both the levels of economic understanding and the attitudes towards economy. It analyzes results of empirical studies and, as a conclusion, develops an "influence model" reflecting the connection between the form of perception of market-induced phenomena, i.e. economic competence, and the evaluation of these phenomena. The model is the fundament for the design of forthcoming studies. (Contains 1 figure and 6 footnotes.)