Applied Economics Teaching Resources

an AAEA Journal

Agricultural and Applied Economics Association

Unannounced Quizzes and Exam Performance: Evidence of a Continuous Preparation Effect in Introductory Microeconomics

Moon Joon Kim(a)
(a)George Mason University Korea

JEL Codes: JEL Codes: A22, I23, D01
Keywords: best-of-N grading, preparation effect, satisficing, strategic slacking, unannounced quizzes

First Published Online: February 11, 2026

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Abstract

This study investigates whether unannounced quizzes can improve student learning outcomes in introductory microeconomics courses. Using data from 257 students and controlling for section-by-semester fixed effects, we find that unannounced quizzes significantly improve final exam performance. Moreover, quiz performance predicts exam success even when quiz scores do not count toward the final grade. This suggests that the results are driven by a continuous preparation effect—students maintaining regular study habits in anticipation of surprise assessments—rather than by immediate grade incentives. However, under a “best-of-N” quiz grading policy, we identify a trade-off. While this policy provides a safety net for lower-performing students (consistent with mastery learning principles), it inadvertently encourages strategic slacking among high achievers. Once these students have secured the maximum possible quiz credit, they rationally reduce their effort. These findings underscore the importance of designing assessment structures that sustain motivation across the full spectrum of student ability levels.

About the Authors: Moon Joon Kim (mkim238@gmu.edu), Department of Economics, George Mason University Korea.

Acknowledgments: This research was supported by funding from the 2026 Mason Korea Faculty Research and Development Award program. Human Subject Information: This study was conducted in accordance with ethical standards for research involving human subjects. Because the analysis relies on de-identified retrospective educational records, the Institutional Review Board (IRB) of George Mason University determined that the study was exempt from formal review (Protocol #[STUDY00000074]).

Copyright is governed under Creative Commons CC BY-NC-SA

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