Utopia Temple
Main Forum Page Register an Account for Free! Calendar Frequently Asked Questions about this Board View New Posts Advanced Search Login
  Utopia Temple Forums > General Discussions > Respectable General Discussions

« Previous Thread | Next Thread »
Post New Thread Reply
Author Thread
Posts: 1772/1865
(21-Jan-2005 at 03:43)


content "Economic Literacy" pop quiz

Hey, all, this is a test from a book called "Economic Literacy" that I thought I'd share with you for fun's sake. I found the test rather intriguing and thought you other policy wonks would like to take a stab at it for yourself. Post your answers here and I can PM you your results. The top answers will be made into my new signature (if allowed), so try your best!

A note to readers: Answers 9 and 10 pertain directly to U.S. economics, although 9 can apply to any country in the same hypothetical situation. But it helps to have at least an elementary knowledge of U.S. economics to answer the last question (or two). And on a last note, I edited SOME things pertaining directly to the use of the book [in the ratings section] so it would seem more legible.

All right, without further delay, I present you with the quiz.

---------------

Pick the answer that you think is correct. What is your economic literact score?

1. A recession occurs when
A. personal income calls for three consecutive months
B. real gross domestic product falls for two or more quarter-year periods
C. the unemployment rate rises above the natural rate of unemployment
D. your successful brother (the one your mother brags about) loses his job

2. When the nation's workers are "fully employed," the nation's unemployment rate is equal to
A. the inflation rate
B. the natural rate of unemployment
C. 0%
D. the unemployment rate in Washington, D.C.

3. Suppose IBM proudly announces that its earnings this year were 15% higher than earnings last year. But in response, the stock market price of IBM shares may fall if
A. investors in the stock market are not always guided by rational expectations
B. investors had expected earnings to rise more than 15%
C. investors had expected earnings to increase less than 15%
D. the report is believed to be the result of computer error

4. Economists closely watch the important federal funds rate. This is the interest rate
A. charged by the Federal Reserve Banks when they lend money to commercial banks
B. the U.S. Treasury pays on government bonds
C. charged by federal employees when they lend government moneye to their relatives
D. that commercial banks charge when they make short-term loans to other commercial banks

5. The gross domestic product of our nation is the
A. income received by all workers in the economy
B. market value of all manufactured goods
C. market value of alll goods and services that are not used to make other goods and services
D. nasty stew your mother-in-law makes from leftovers

6. The widely followed Consumer Price Index is used to measure
A. changes in the cost of living
B. changes in consumer spending
C. inflation
D. how much it costs to live beyond your means

7. If a nation has a market economy, then
A. prices of essential goods and services are set by government agencies
B. governments do not produce any goods or services
C. its politicians can be bought
D. most of the things we use to produce goods and services are owned by individuals and private firms

8. Examples of externalities in our economy include
A. automobile exhause fumes
B. fish killed by industrial pollutants
C. both of the above
D. portions of the body exposed by French-cut bikinis

9. When the value of the U.S. dollar declines in international trading, then it is likely that
A. American people will prefer to make purchases by cash rather than by credit card
B. U.S. exports will rise
C. U.S. exports will fall
D. this book will become more expensive

10. During the 1990-1991 recession in the United States the unemployment rate for the nation reached a high level of about (select the closest value)
A. 24%
B. 11%
C. 7%
D. 2%
E. 0%

. . . . .

Rating Your Score on the Pop Quiz

9-10 correct . . . You are a pro!
7-8 correct . . . Your conversational economics is good, but you could get tripped up on a few terms.
5-6 correct . . . Avoid talkingwith professional economists, and take a low profile at business meetings, until you read this book. You show promise.
3-4 correct . . . You probably break out in a cold sweat when you hear an economist talk.
1-2 correct . . . Chances are that when you read economic news, your lips get tired.
None correct . . . Maybe you should run away from it all and paint landscapes in Mongolia.

Warning: This short pop quiz is certainly not a complete test of your economic literacy. Many important topics in economics were not mentioned in the quiz.

---------------

For the record, I got an 8, and I will be posting my results in my signature (but not my answers, lest they get ripped off). Good luck!

Top results for the Economic Literacy pop quiz - take the Economic Literacy Quiz now!
1. Pip Squeek with 10 points!
2. Jasse, Kazac, chessness, Lonely Tylenol (Me) with 8 points
3. alero, Amanema Tsukihi, cdndude83, ebeneezer, Gus Mackay, Iranos, Lodewijk, Michael1, Seint, sparky wizzle, WillowWalker with 7 points
#1  
View Public Profile Find more posts by Lonely Tylenol Add Lonely Tylenol to your Buddy List Reply with Quote
Posts: 20/70
(21-Jan-2005 at 04:14)
1) b
2) c
3) c
4) a
5) c
6) a
7) d
8) c
9) d
10) b

wow i didnt know any of the answers :S XD!

Freuds Favorite Plaything
Are you sure what side of the glass you are on...
proud to be engaged to a former member of FearUs
Signature suspended by Starfriend for violating the forum's rules.
Because im EVIL!!!
#2  
View Public Profile Find more posts by kytten Add kytten to your Buddy List Reply with Quote
Posts: 621/2150
Donated $5.00
(21-Jan-2005 at 04:15)


Ok here are my answers.

1. b
2. b
3. b
4. a
5. a
6. c
7. d
8. c
9. b
10. b

Where has my avatar gone?

The true meaning of silence
#3  
View Public Profile Find more posts by Gus Mackay Add Gus Mackay to your Buddy List Reply with Quote
Posts: 3658/4208
(21-Jan-2005 at 04:52)


b b a a c a d b b b

Sygnalor the Accountinator
Able to file 1040's faster than a speeding bullet
#4  
View Public Profile Find more posts by Sygnal Add Sygnal to your Buddy List Reply with Quote
(User is Banned)
Posts: 963/1664
Donated $2.04
(21-Jan-2005 at 05:11)
B
B
B
A
C
C
D
C
B
B

But to be fair, economics isn't real.
#5  
View Public Profile Find more posts by Kazac Add Kazac to your Buddy List Reply with Quote
Posts: 249/419
(21-Jan-2005 at 05:34)


Just a note, Question 4 is directly related to the US economy.

I am not crazy. Those are not voices in my head.
#6  
View Public Profile Find more posts by Golgoth Add Golgoth to your Buddy List Reply with Quote
Posts: 710/1424
Donated $1.24
(21-Jan-2005 at 05:51)


b c b a c a d c b b

I took two economics classes last semester, so I'd hope I did well...

"A smile is the perfect gift--personal and encouraging."--one Dove Chocolate wrapper
"Love is always the perfect gift."--another Dove Chocolate wrapper
"A loving smile is the perfect personal gift of encouragement" -SaSi
Eh... I'll go with the Dove wrappers.
#7  
View Public Profile Find more posts by Wavelength Add Wavelength to your Buddy List Reply with Quote
Posts: 3660/4208
(21-Jan-2005 at 05:57)


You took two economics classes and you answered number 2 C?

Sygnalor the Accountinator
Able to file 1040's faster than a speeding bullet
#8  
View Public Profile Find more posts by Sygnal Add Sygnal to your Buddy List Reply with Quote
(Posted as WillowWalker)
Posts: 534/1119
Donated $5.00
(21-Jan-2005 at 06:00)
B
B
B
A
C
A
D
C
B
B


From someone who has yet to take an economic class.
#9  
View Public Profile Find more posts by Stygma Add Stygma to your Buddy List Reply with Quote
Posts: 711/1424
Donated $1.24
(21-Jan-2005 at 06:02)


Ouch.

Actually wasn't sure on that one. I know it would be absolutely absurd for there to be zero unemployment, but then my reasoning was that maybe "fully employed" never happened. If there are people looking for jobs that cannot find them at a reasonable wage, then how can the country be "fully employed"?

That being said, I remember more out of Micro than Macro Econ, and I may have just forgotten the definition of "fully employed."

"A smile is the perfect gift--personal and encouraging."--one Dove Chocolate wrapper
"Love is always the perfect gift."--another Dove Chocolate wrapper
"A loving smile is the perfect personal gift of encouragement" -SaSi
Eh... I'll go with the Dove wrappers.
#10  
View Public Profile Find more posts by Wavelength Add Wavelength to your Buddy List Reply with Quote
Posts: 250/419
(21-Jan-2005 at 06:51)


Quote:
(Originally posted by Wavelength)

Ouch.

Actually wasn't sure on that one. I know it would be absolutely absurd for there to be zero unemployment, but then my reasoning was that maybe "fully employed" never happened. If there are people looking for jobs that cannot find them at a reasonable wage, then how can the country be "fully employed"?

That being said, I remember more out of Micro than Macro Econ, and I may have just forgotten the definition of "fully employed."
Just for you, Full employment occurs when the country/economy attains its 'natural rate of unemployment'. Which is when total unemployment minus cyclical, hardcore and structural (I'm not too sure about structural, it might be another one) is 0.

I am not crazy. Those are not voices in my head.
#11  
View Public Profile Find more posts by Golgoth Add Golgoth to your Buddy List Reply with Quote
(User is Banned)
Posts: 964/1664
Donated $2.04
(21-Jan-2005 at 06:56)
Quote:
(Originally posted by Golgoth)

Just a note, Question 4 is directly related to the US economy.
D is the cash rate, so it is pretty safe to assume it is A.

Last edited by Kazac, 21-Jan-2005 at 07:10.
#12  
View Public Profile Find more posts by Kazac Add Kazac to your Buddy List Reply with Quote
Posts: 9/20
(21-Jan-2005 at 06:59)
1)b
2)b
3)b
4)a
5)c
6)a
7)d
8)c
9)b
10)b
#13  
View Public Profile Find more posts by ebeneezer Add ebeneezer to your Buddy List Reply with Quote
Honorary Member
Posts: 3693/3991
(21-Jan-2005 at 07:14)


1.B
2.When all those who wish to work are in employment, this can vary depending on how it is recorded, full employment recorded by the way of those claiming benefits will not neccessarily mean the same as full emplyment on the labour force survey.
3.B, although in all fairness if it was believed to be an error that would be perfectly fair as an answer.
4.A
5.GDP is actually a figure representing AD in an economy, otherwise known as aggrigate expenditure it is comprised of AD = C + I + G + (X - M), and so as to the question what is GDP, it is a combination of total consumer spending, investment, government spending and exports and imports. I think B covered it closest but even there it is not a good explination, as it covers more then simply goods.
6.C,however it isn't widely followed anymore, most nations have now resorted to the HICP (Harmonised Index of Consumer Prices) or now known as the Consumer Price Index, they measure in different ways. In fact in all fairness RPI was rarely used due to its inclusion of inflation, the prefered method was RPI-X.
7.D, although in the name of all that is anal, actually its more about the freedoms which the economy entails. Its about more then just ownership but rules and regulations etc as well.
8.C
9.B
10.I would hazzard a guess at B or C, most likely B as the current unemployment rate is running only slightly lower then C. However a big question is which measure of unemployment is used?

Now you can all say, what a tw*t he could have just answere the bloody questions. Wouldn't have been a very exciting thread then would it?

Getting banned is not smart, nor cool. - Swifty
#14  
View Public Profile Find more posts by Jasse Add Jasse to your Buddy List Reply with Quote
Posts: 1773/1865
(21-Jan-2005 at 07:52)


Quote:
3.B, although in all fairness if it was believed to be an error that would be perfectly fair as an answer.
Bahaha! Yep, that's one of the ones I answered wrong. I thought D would be fair but I guess it wasn't necessarily what they were looking for. So now that one's been given up.

Glad to see that it got a response, and apparently promoted a little healthy discussion. Better get cracking on those answer responses.

Top results for the Economic Literacy pop quiz - take the Economic Literacy Quiz now!
1. Pip Squeek with 10 points!
2. Jasse, Kazac, chessness, Lonely Tylenol (Me) with 8 points
3. alero, Amanema Tsukihi, cdndude83, ebeneezer, Gus Mackay, Iranos, Lodewijk, Michael1, Seint, sparky wizzle, WillowWalker with 7 points

Last edited by Lonely Tylenol, 21-Jan-2005 at 07:53.
#15  
View Public Profile Find more posts by Lonely Tylenol Add Lonely Tylenol to your Buddy List Reply with Quote
Posts: 4/16
(21-Jan-2005 at 08:17)
1 B
2 B
3 B
4 A
5 C
6 B
7 D
8 C
9 B
10 A (Not in the US so don't know just guessed)

why dont you give us the answers?
#16  
View Public Profile Find more posts by Seint Add Seint to your Buddy List Reply with Quote
Posts: 2027/5486
Donated $11.20
(21-Jan-2005 at 15:44)


Alright, I'll play. Been awhile re: externalities though... actually about 14 years since any economics classes at all

b
b
b
a
c
a
d
b
b
c

Man is the only animal that blushes, or needs to.-- Mark Twain

Last edited by Michael1, 21-Jan-2005 at 15:46.
#17  
View Public Profile Visit Michael1's homepage Find more posts by Michael1 Add Michael1 to your Buddy List Reply with Quote
Posts: 3661/4208
(21-Jan-2005 at 16:24)


Gah, I just got the answers, and I can refute every one I got wrong excluding the one involving the dead fish or whatever; I've never heard of that.

Sygnalor the Accountinator
Able to file 1040's faster than a speeding bullet
#18  
View Public Profile Find more posts by Sygnal Add Sygnal to your Buddy List Reply with Quote
Posts: 470/667
(21-Jan-2005 at 21:35)


1.b
2.b
3.b
4.b
5.c
6.a (or c)
7.d
8.c
9.b
10.b (my best guess...c would be my next guess)

lemme know how i did Although many of them seem to have multiple responses possible... (use the first answers i give as the basis for scoring.)

Our paradigm now seems to be: Something terrible happened to us on September 11, and that gives us the right to interpret all future events in a way that everyone else in the world must agree with us. And if they don't, they can go straight to hell. - Bill Clinton
#19  
View Public Profile Find more posts by cdndude83 Add cdndude83 to your Buddy List Reply with Quote
Posts: 21/70
(21-Jan-2005 at 22:09)
wow.
i feel realleh stupid.
i got 4 right XD!

Freuds Favorite Plaything
Are you sure what side of the glass you are on...
proud to be engaged to a former member of FearUs
Signature suspended by Starfriend for violating the forum's rules.
Because im EVIL!!!
#20  
View Public Profile Find more posts by kytten Add kytten to your Buddy List Reply with Quote
Reply

Thread Tools
Display Modes

Forum Jump:


All times are GMT+1. The time now is 13:04.

Powered by vBulletin (modified)
Copyright ©2000-2006, Jelsoft Enterprises Ltd.