Economic Literacy

When good weather in the Midwest increases the wheat harvest, the result is:

• Higher quantity and lower prices.

• Higher quantity and higher prices.

• Lower quantity and lower prices.

• Don't know.

A person who uses a new idea to bring out a product or service to the marketplace is known as:

• A manager.

• A bureaucrat.

• An entrepreneur.

• Don't know.

For most people, the largest portion of their personal income comes from:

• Interest from stocks and bonds they own.

• Wages and salaries from their jobs.

• Rent paid to them from property they own.

• Don't know.

What word would apply if the total dollar value of spending in the US went up but the goods consumed remained same

• Deflation.

• Recession.

• Inflation.

• Don't know.

Think about the quantity of plums and apples that people want to buy in a market. If the price of plums doubled and the price of apples stayed the same, what would happen to these quantities?

• Plums up, apples down.

• Plums down, apples up.

• Both plums and apples the same as before.

• Don't know.

If in an emergency the government sets a limit on the price that can be charged for gas, what is the most likely result

• There will be more gasoline available than people want to buy.

• There will be less gasoline available than people want to buy.

• Don't know.

• The amount of gas available will be equal to the amount people want to buy.

If a government restricts the imports of sugar into a nation, who is likely to benefit?

• Consumers of products that use sugar.

• The nation's sugar producers.

• Producers that use sugar as a raw material.

• Don't know.

Why do people in all societies have to make choices about how to use resources?

• Resource owners are greedy.

• Resources used in the production of goods and services are limited.

• Consumers of resources are irrational.

• Don't know.

Which of the following would reduce inequality of income in the United States?

• Increased use of technology that makes professionals more productive.

• Improvement of schools serving lower-income populations.

• Increased international trade in manufactured goods.

• Don't know.

Suppose you have $100 in a savings account earning 2 percent interest a year. After five years, how much would you have?

• More than $102

• Exactly $102

• Less than $102

• Don't Know