Educators should assess the economics curricula in order to determine whether the latest and most accurate views of economic life in the United States and the world are taught to high school students. Economic literacy involves knowing and applying fundamental economic theories in order to make rational decisions about the use of limited resources. This digest considers the nature of economic literacy through an exploration of the basic economic concepts that students should learn, a definition of economics as a way of thinking, and desired outcomes of education for economic literacy. Fundamental themes of economics education should include scarcity, productive resources, economic systems, exchange, incentives, the market place, and managing the economy. An economic way of thinking refers to decision-making as the central skill of economic literacy and emphasizes the application of this skill to decision-making. While the ability to conduct objective and reasoned analysis of economic issues is the most important benefit of economic literacy education, students also learn to understand the economic dimensions of issues, to evaluate the consequences of economic decisions, and to participate intelligently in the political process. (JHP)