Computer based assessment was introduced into an introductory economics course at the University of Queensland during the second semester of 1986. Over 600 students used computer generated and graded random tests for a number of assignments. A commercial computer managed learning (CML) software package was used to administer and grade tests and to keep records, generate reports, and provide analyses of student and question bank performance. The effectiveness of the CML approach was evaluated by using evidence from responses to a student questionnaire and by the end-of-year examination. Student acceptance of CML was overwhelming, and the increase in student end-of-year grades after using the system was substantial. CML provides a powerful mechanism for addressing such issues as learning effectiveness, utilization of resources, student motivation, support to students, learner control, and cost-effectiveness. As a result of the success of the implementation of CML in 1986, a much larger scale CML operation was undertaken in 1987, involving a number of semester subjects, and more than 1,600 students taking approximately 49,000 tests throughout the year. It was concluded that the implementation of CML on a wide scale could improve student performance and staff productivity, and that setting up a CML facility can be achieved at affordable cost since the hardware requirements are relatively small. (The student questionnaire is included. Appendixes, which constitute more than one half of the report, include examples of typical module tests, student responses to the questionnaire, and examples of selected CML reports and item analysis options. 22 references) (GL)