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This study uses the Product Development Cycle developed by W. James Popham and Eva L. Baker as a systems approach to Computer-Aided-Instruction development. This process establishes seven stages (Formulation, Item Specification, Item Tryout, Product Development, Product Tryout, Product Revision, and Operations Analysis) and rules that are to be followed at each stage. Formative and summative evaluation are incorporated to improve the product's development. Instructional design is integrated into this process by using Component Display Theory developed by M. David Merrill. Merrill uses a Performance-Content matrix to develop learner objectives and items to test performance. Presentation Forms (Primary and Secondary) are used to develop the way information will be presented to students. The CAI program (developed in Pascal) utilizes interactive laserdisc technology to teach Introduction to Economics to a high school social studies class. The CAI program uses an Apple IIGS computer and a Pioneer LD-V4200 laserdisc player. The laserdisc is Introduction to Economics From MECC. Laserdisc segments are presented to supplement text instruction and to provide feedback to student responses. An experiment to compare the CAI lesson to a traditional lecture was conducted. A two-factor analysis of variance (groups vs. tests with tests as a repeated measure) showed no significant interaction ({dollar}p{dollar} =.854) between groups and test scores: {dollar}F{dollar}(2,68) =.159. There also was no difference ({dollar}p{dollar} =.794) between the groups' test scores: {dollar}F{dollar}(1,34) =.069. There was a significant difference ({dollar}p{dollar} =.003) between pretest and retention test scores: {dollar}F{dollar}(2,68) = 6.425. Scores for the groups were collapsed yielding a significant gain on an analysis of variance with scores as a repeated measure (F (2,70) = 6.58, p =.002). Based on the Scheffe F-test, a significant gain was found from pretest to posttest (3.109) and from pretest to retention test (6.229). An attitude survey administered yielded significantly more positive attitudes toward (a) the instruction ({dollar}F{dollar} (1,43) = 8.57), p = 8.57), {dollar}p{dollar} =.006); (b) presentation of material ({dollar}F{dollar} (1,43) = 4.64, {dollar}p{dollar} =.037); (c) amount learned ({dollar}F{dollar} (1,43) = 6.251, {dollar}p{dollar} =.016); and, economics ({dollar}F{dollar} (1,43) = 8.704, {dollar}p{dollar} =.005) for the computer group.