Knowledge of economics is important for individuals to function effectively as citizens in an increasingly connected world economy. Economic literacy includes understanding how economies and markets work, what the benefits and costs of economic interaction and interdependence are, and that people have to make choices because resources are limited. In recent decades, the focus on economics content in the school curriculum has increased. In this first National Assessment of Educational Progress (NAEP) assessment of economics at grade 12, the overall average economics score, set at 150, fell within the "Basic" achievement level. Seventy-nine percent of students performed at the "Basic" level or higher, and 42 percent performed at the "Proficient" level or higher, including 3 percent at the "Advanced" level. Results are based on a nationally representative sample of 11,500 twelfth-grade students from 590 public and nonpublic high schools. Some key findings include: (1) The average economics score of male students was higher than the average score of female students; (2) White and Asian/Pacific Islander students scored higher, on average, than other racial/ethnic groups; (3) Students from large city schools had lower average scores than students in other locations; (4) Students whose parents had higher levels of education exhibited higher performance in economics; and (5) Most students study some economics in high school. (Contains 11 figures.)