Study-related prior knowledge plays a decisive role in business and economics degree courses. Prior knowledge has a significant influence on knowledge acquisition in higher education, and teachers need information on it to plan their introductory courses accordingly. Very few studies have been conducted of first-year students' prior economic knowledge or differences among students in such knowledge. In this article, the prior economic knowledge and the influence of personal factors on first-year students' prior economic knowledge are examined. For this purpose, an adaptation of the fourth, revised edition of the American Test of Economic Literacy was administered, which was adapted in 2014 according to the Test and Adaptation Guidelines for use in higher education in Germany. We present findings based from an assessment conducted in higher education in Germany in the summer term of 2014; the subsample for this study comprises first-year students of business and economics. Findings indicate that there are significant differences in prior economic knowledge among first-year students within universities. Influence factors include economic learning experiences prior to starting university, gender, and mother tongue. The article closes with implications for teaching and degree program design.