A preliminary study was conducted at which the "Test for Economic Understanding" was given to 98 Anglo and 35 Mexican American freshmen and sophomore students at New Mexico State University at the beginning and end of the 1971 fall semester. The following questions guided the investigation: (1) Is there a significant difference between Mexican American students and Anglo students in terms of their understanding of basic economics at the onset of a principles course in economics? (2) Is there a significant difference between Mexican American students and Anglo students in terms of their understanding of basic economics at the end of the same course? (3) Is there a significant difference in the relative gain in economic understanding between the two groups? The findings indicated that the significant difference in economic literacy which existed between Anglo and Mexican American students at the beginning of an introductory course in economics appeared to be eliminated upon completion of the course. In the expanded study currently under investigation, the sample size has been increased from 133 to 216 Anglo and Mexican American students. The primary interest of the current investigation is to determine what, if any, factors other than ethnicity, are related to changes in economic understanding. The analytical tool to be utilized in treating the data involves computing in sequence multiple linear regressions equations. (HBC)