C. Dweck (1983) suggested that children hold one of two types of beliefs in their own intelligence: a fixed entity with which they are born (entity theory) or a belief that intelligence can be changed over time (incremental theory). These two beliefs were studied through the responses of 22 second graders and observations of their behavior. The relationship between the children's beliefs and their motivation was also studied in relation to the public (classroom) setting, the teacher, and the task. Findings suggest that many children do not see learning as an incremental process and do not set learning goals. The challenge for the teacher is to develop a classroom in which all students operate within a "learning goals" orientation and see learning as an incremental process. (Contains 12 references.) (SLD)