Economic Literacy Quiz

Test your own economic literacy with these 20 questions. Then view results to see how you rank against everyone else who has taken the quiz.

Answer the following background questions so you can compare your test result with others.
Age:
Sex:

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Education: Grade school
High school
1-2 years of college
4 years of college
Graduate school
Employment: Employed
Unemployed
Answer each of the 20 questions to the best of your ability. Use the "Grade Test" button at the bottom of the screen to see how you did.
1.
A large increase in the number of fast-food restaurants in a community is most likely to result in:
A. Lower prices and higher quality.
B. Lower prices and lower quality.
C. Higher prices and higher quality.
D. Don't Know
2.
A person who starts a business to produce a new product in the marketplace is known as:
A. A manager.
B. A bureaucrat.
C. An entrepreneur.
D. Don't Know.
3.
An increase from 5% to 8% in the interest rates charged by banks would most likely encourage:
A. Businesses to invest.
B. People to purchase housing.
C. People to save money.
D. Don't Know.
4.
For most people, the largest portion of their personal income comes from:
A. Wages and salaries from their jobs.
B. Interest from stocks and bonds they own.
C. Rent paid to them from property they own.
D. Don't Know.
5.
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:
A. Increased.
B. Decreased.
C. Remained the same.
D. Don't Know.
6.
If the price of beef doubled and the price of poultry stayed the same, people would most likely buy:
A. More poultry and less beef.
B. Less poultry and more beef.
C. The same amount of poultry and beef.
D. Don't Know.
7.
If the United States stopped importing automobiles from Country X, who would be most likely to benefit?
A. Automobile manufacturers in Country X
B. Consumers in the United States
C. Automobile manufacturers in the United States
D. Don't Know.
8.
If your city government sets a maximum amount landlords can charge in rent, what is the most likely result?
A. There will be more apartments available than people want to rent.
B. There will be fewer apartments available than people want to rent.
C. The number of apartments available will be equal to the number of people that want to rent.
D. Don't Know.
9.
In the United States, who determines what goods and services should be produced?
A. Producers and government
B. Consumers and government
C. Producers, consumers, and government
D. Don't Know.
10.
Mexico grows fruits and vegetables and Argentina produces beef. If Mexico voluntarily trades fruits and vegetables in exchange for Argentinean beef,
A. Both Mexico and Argentina benefit from the trade.
B. Both Mexico and Argentina lose from the trade.
C. Mexico benefits and Argentina loses from the trade.
D. Don't Know.
11.
The manufacturers of XYZ winter sportswear have their manufacturing plants running night and day, but they are unable to produce enough sportswear to satisfy demand. If XYZ manufacturers cannot increase production and demand continues to increase, the price of XYZ winter sportswear will:
A. Increase.
B. Decrease.
C. Stay the same.
D. Don't Know.
12.
The resources used in the production of goods and services are limited, so society must:
A. Make choices about how to use resources.
B. Try to obtain additional resources.
C. Reduce their use of resources.
D. Don't Know.
13.
The stock market is an example of an institution within our economy that exists to help people achieve their economic goals. The existence of this institution:
A. Results in an increase in the price of stocks.
B. Brings people who want to buy stocks together with those who want to sell stocks.
C. Helps predict stock earnings.
D. Don't Know.
14.
When a person rents an apartment, who benefits from the transaction?
A. Only the person renting the apartment.
B. Only the landlord.
C. Both the person renting the apartment and the landlord.
D. Don't Know.
15.
When deciding which of the two items to purchase, one should always:
A. Choose the item that costs less.
B. Choose the item with the greatest benefits.
C. Choose an item after comparing the costs and benefits of both items.
D. Don't Know.
16.
When governments supply products and services, these products and services usually benefit:
A. More than one person at a time whether they have paid for it or not.
B. Only the people who pay for these products and services.
C. Business at the expense of consumers.
D. Don't Know.
17.
When the federal government's expenditures for a year are greater than its revenue for that year, the difference is known as:
A. The national debt.
B. A budget deficit.
C. A budget surplus.
D. Don't Know.
18.
Which of the following are most likely to be helped by inflation?
A. People living on a fixed income.
B. Banks that loaned money at a fixed rate of interest.
C. People who borrowed money at a fixed rate of interest.
D. Don't Know.
19.
Which of the following would be most likely to accelerate innovation in the computer industry?
A. Placing a tax on all new inventions in he computer industry.
B. Increasing government regulation of the computer industry.
C. Investing in more research and development in the computer industry.
D. Don't Know.
20.
Which one of the following statements about the function of money is wrong?
A. Money makes it easier to save.
B. Money makes trading goods and services easier.
C. Money holds its value well in times of inflation.
D. Don't Know.

 

 

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