Keywords:
Economic Literacy
Factor Analysis
LOTS–HOTS Taxonomy
Critical Thinking
Secondary Education

  • Abstract

    Economic literacy has become a vital competency in twenty-first-century education, requiring students to develop analytical reasoning, reflective judgment, and critical evaluation of socio-economic phenomena. In secondary education, economic literacy is expected to help students interpret complex economic data and make informed decisions in dynamic, global contexts. While existing research has focused on behavioral outcomes, financial competence, and welfare implications, less attention has been given to the design of measurement instruments that integrate Higher Order Thinking Skills (HOTS) into economic literacy assessments. This study aims to examine the factor-analytic evidence underlying economic literacy measurement and explore how latent constructs align with the Lower Order Thinking Skills (LOTS)–HOTS taxonomy and critical thinking development in secondary education. A systematic literature review was conducted following PRISMA 2020 guidelines, with empirical studies published between 2015 and 2025 retrieved from the Scopus database using keywords related to economic literacy, factor analysis, assessment design, critical thinking, and secondary education. After a multi-stage screening process, 67 studies were included in the final synthesis. Data extraction focused on measurement objectives, analytical methods—especially Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA)—construct dimensions, and alignment with cognitive taxonomies. The findings show a shift from knowledge-based assessments to multidimensional models incorporating cognitive reasoning, contextual awareness, and critical thinking. While factor-analytic methods are widely used, few studies explicitly integrate LOTS–HOTS taxonomy within economic literacy instruments. Importantly, the research suggests that the most effective measurement models treat critical thinking not as a mere learning outcome but as an embedded construct in assessment indicators. This study contributes conceptually by redefining economic literacy as a higher-order competence rooted in critical literacy and constructivist learning theory, and methodologically by emphasizing the role of EFA and CFA in developing psychometrically sound assessments. The findings provide valuable insights for researchers, educators, and policymakers in designing economic literacy instruments that capture students’ analytical and reflective abilities in complex economic contexts.

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Selviani, S., Suarman, & Sumarno. (2026). Designing economic literacy measurement in secondary education: Empirical evidence integrating LOTS-HOTS taxonomy and critical thinking . Multidisciplinary Reviews, (| Accepted Articles). Retrieved from https://malque.pub/ojs/index.php/mr/article/view/16508
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