The relationship between class size and scholastic outcomes is addressed in this paper. A literature review focuses on the research of Glass and Smith (1978) and Larkin and Keeves (1984). Contradictory and inconclusive research findings about teacher effectiveness in relation to class size indicate that emphasis should be placed on training teachers in instructional strategies most appropriate for a variety of class sizes. A recommendation is that rather than establishing an absolute class size policy, class sizes should be lowered in those subjects which require more teacher/pupil interaction and which have high workloads. Overall findings do not support the cost associated with universal class size reduction and indicate that smaller investments in other educational strategies may yield similar or greater achievement gains. Two figures illustrate the research of Glass and Smith, and one table presents student/teacher ratios by state. (22 references) (LMI)