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Mathematics Skills and Everyday Problem Solving

We administer a basic mathematics exam to over 600 students enrolled in various college economics courses to understand what factors influence a student's ability to use basic math skills in solving simple real world problems. We find that students with strong elementary math skills are better able to use their math background in solving everyday problems. Moreover, our findings suggest that by taking more math classes in college, students significantly improve their ability to apply math in real world settings. Finally, we find that many demographic variables are important determinants, particularly the size of personal and family income. Students with greater personal financial responsibility in funding their education do significantly better in understanding and applying basic math skills.