World Applied Sciences Journal 28 (6): 871-875, 2013 ISSN 1818-4952 © IDOSI Publications, 2013 DOI: 10.5829/idosi.wasj.2013.28.06.1071 Corresponding Author: Che Noraini Hashim, Institute of Education International Islamic University Malaysia. 871 Economics Literacy among University Students: A Case Study of International Islamic University Malaysia (IIUM) Che Noraini Hashim and Bakare Kazeem Kayode Institute of Education International Islamic University Malaysia Submitted: Nov 22, 2013; Accepted: Dec 24, 2013; Published: Dec 27, 2013 Abstract: The rapid economic growth has necessitated the need for pupils to have an insight in basic daily economics knowledge that are sufficient for practical application. This work is undertaken to ascertain the level of economics literacy among university students. The study firstly measures the levels of awareness of economics literacy and secondly compares the mean scores of economics literacy among students who studied economics and related courses with those who had not. The study also compares the levels of economics literacy among Malaysian students versus the international students. A quantitative research method was adopted and the Test of Economics Literacy (TEL) was used as a research instrument. Undergraduate students from different faculties at the in International Islamic university Malaysia (IIUM) who registered at semester two were the target population. A sample of 200 students consisting of students from economics department and from other course specializations were randomly selected. In the end, only 161 students had set for the Test with almost 60 percent of them were students from the economics faculty, while close to 63 percent of the sample who set for the test comprised of Malaysians. Three hypotheses were tested. It was found that the mean score among respondents in the TEL test with respect to gender, academic background and nationality was 12pts or equivalent to 60 percent; this level of TEL mean score revealed that undergraduates at the IIUM were lacking in the overall economics literacy. Mean score among students who studied economics was found to be relatively higher than those without economics background, but the difference is not statistically significance. Base on the result from the third hypothesis test, it suggests that there exists a significant difference in the mean score of economics literacy between the local and the international second semester’s undergraduates at the IIUM. The overall findings, point to the conclusion that about one third of the second semester’s undergraduates lacked of economics knowledge and that the exposure to the economics course had positive effect on the TEL mean score. Findings also indicate the consequence of the lack of emphasis on economics education at the Malaysian high school level. Key words: Economics literacy Economic Background Economic Scourse INTRODUCTION students who are either completing the prerequisites for Education is as important as the thread gives form to completing the general education requirements of an the fabric of the society. It has become increasingly more associate or bachelor’s degree. This can be a critical error important in a society today, especially at times when as [5] cited teaching economic principles with surface education and knowledge are considered to be understanding might impede creativity and practical prerequisites for societal progress. With more and more application by the students. [6] argued that ignorance educated citizens, it is believed that a country in itself about the workings of an economic system can lead to would prosper economically and therefore would be destructive attitudes towards the very system that politically stable [1]. Many economists felt that basic produces the economic well–being of that society. economics courses such as the principles of economics In Malaysia, the government has given education an would not significantly improve the economic literacy important role in uniting the various races and in fostering among citizens [2-5]. These courses are often taught national income.Therefore, a large investment had been during the freshman and sophomore years in college by allocated to promote high quality education especially at studying business or for majoring in economics or for