The purposes of this study were to determine: (1) If students, as a result of their enrollment in the principles of macroeconomics course, increase their economic understanding, increase their ability to recognize economic myth, and change their attitudes toward economics? (2) If there is differential performance between students learning by the conventional approach and students learning by the audio-visual-tutorial approach in terms of economic understanding, ability to recognize economic myth, and attitudes toward economics? (3) If there is a relationship between selected independent variables and the three dependent variables identified above?; The conventional lecture method included textbook readings and four class meetings per week devoted to lecture and discussion. The audio-visual-tutorial method had students meet with instructors twice per week and then use audio-visual-tutorial materials located in the College Learning Center.; Instruments used were the Test of Understanding in College Economics (TUCE), a questionnaire on Economic Myth and Reality (MR), a questionnaire on Student Attitude Toward Economics (ATT), and a student information sheet.; Statistical analysis included t-tests and regression analysis.; Findings: (1) There were no significant differences between the groups in terms of economic understanding and recognition of economic myth. However, both groups significantly improved their economic understanding and were significantly better able to recognize economic myth as a result of taking the course. (2) There were no significant differences between the groups in terms of attitude toward economics when compared on the basis of post scores and gain scores. (3) The regression analysis showed that the post TUCE was most sensitive to GPA, PRETUCE, and VERSAT; that the post MR was most sensitive to the VERSAT, PREMR, and GPA; and that the post ATT was most sensitive to INT2.; Statistically, no significant differences between means of the experimental and control groups were found in this study. This suggests that innovations in instruction using the audio-visual-tutorial approach within the general framework of the conventional lecture method are no better or worse than the conventional lecture method in their effect on the achievement of students in economics courses.
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