The paper assesses the degree of understanding about the free enterprise system gained by participants in a one-month summer inservice teacher training institute. Developed in response to a 1973 Texas House Bill which mandated the inclusion of free enterprise education in the secondary curriculum, the institute suggests major topics, concepts, and behavioral objectives for use by teachers of economics. All 38 participants in the 1977 American Economy Institute at Texas A & M University took a 105-item test instrument as a pretest at the beginning of the program and again as a posttest at the conclusion of the program. Teacher's test results indicate that there was a significant gain in participant understanding of all areas of free enterprise except alternative economic systems. The conclusion is that the American Economic Institute workshop succeeded in transmitting content associated with objectives and major topic areas related to the teaching of free enterprise. During a projected second phase of the investigation, a shorter version of the test will be administered to students taught by workshop participants. Presented in the appendix are a copy of the 105-item Free Enterprise Understanding test with answer key, and the shorter 50-item version of the test for use with secondary school students. (Author/DB)