Test of Economic Literacy

Front

A large increase in the number of fast-food restaurants in a community is most likely to result in:

Back

Lower prices and higher quality.

Front

A person who starts a business to produce a new product in the marketplace is known as:

Back

An entrepreneur.

Front

An increase from 5% to 8% in the interest rates charged by banks would most likely encourage:

Back

People to save money.

Front

If the real gross domestic product of the United States has increased, but the production of goods has remained the same, then the production of services has:

Back

Increased.

Front

If the price of beef doubled and the price of poultry stayed the same, people would most likely buy:

Back

More poultry and less beef.

Front

If the United States stopped importing automobiles from Country X, who would be most likely to benefit? Options: Automobile manufacturers in Country X, Consumers in the United States, Automobile manufacturers in the United States, Don't Know

Back

Automobile manufacturers in the United States

Front

If your city government sets a maximum amount landlords can charge in rent, what is the most likely result?

Back

There will be fewer apartments available than people want to rent.

Front

In the United States, who determines what goods and services should be produced?

Back

Producers, consumers, and government

Front

If Mexico voluntarily trades fruits and vegetables in exchange for Argentinean beef, what is the outcome of the trade?

Back

Both Mexico and Argentina benefit from the trade.

Front

The resources used in the production of goods and services are limited, so society must:

Back

Make choices about how to use resources.