Economics Literacy Quiz

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

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

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

What word would apply if the total dollar value of spending in the United States went up but the goods and services consumed remained just the same?

• Deflation

• Recession

• Inflation

• 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

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

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 gasoline (price ceiling), 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

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

• Don’t know

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.