Take this test on economy, government, and history

[seamusTX]

http://www.americancivicliteracy.org/re ... /quiz.aspx" onclick="window.open(this.href);return false;

Many of the questions are slam-dunks, but some are real tricky. Take your time.

- Jim

[Mike1951]

Embarrassed to say I missed 6. Scored 84.85%

[TexasComputerDude]

I got an 83% Some of them tricked me cause I read them to fast lol

[nitrogen]

You answered 31 out of 33 correctly — 93.94 %

I hated greek philosophy, and got that one wrong, along with the tax per person one, which was confusing to me and I just didn't get it.

[jimlongley]

28 out of 33, I was never real good at economics.

[The Annoyed Man]

I got a 93.94. I'm embarrassed to say that I got question #10 wrong because I was in a hurry and didn't read it right.

[Xander]

Not bad, considering the average elected official scores 44%.

http://www.marginalrevolution.com/margi ... f-the.html" onclick="window.open(this.href);return false;

[SCone]

28 out of 33 - Two questions I have trouble with.

30) Which of the following fiscal policy combinations would a government most likely follow to stimulate economic activity when the economy is in a severe recession?
A. increasing both taxes and spending
B. increasing taxes and decreasing spending
C. decreasing taxes and increasing spending
D. decreasing both taxes and spending

33) If taxes equal government spending, then:
A. government debt is zero
B. printing money no longer causes inflation
C. government is not helping anybody
D. tax per person equals government spending per person
E. tax loopholes and special-interest spending are absent

The correct answers for these two seem wrong. Does any else think the same as me?

I don't want to give the answers for those that haven't taken the test yet.

[Taxman]

Yeah SCone I had a problem with their answers on those two as well.

[Xander]

The correct answers for these two seem wrong. Does any else think the same as me?

No, I felt they were clearly correct. What made them seem incorrect to you? Or rather, which answers would you argue are the correct answers?

[jimlongley]

28 out of 33 - Two questions I have trouble with.

30) Which of the following fiscal policy combinations would a government most likely follow to stimulate economic activity when the economy is in a severe recession?
A. increasing both taxes and spending
B. increasing taxes and decreasing spending
C. decreasing taxes and increasing spending
D. decreasing both taxes and spending

33) If taxes equal government spending, then:
A. government debt is zero
B. printing money no longer causes inflation
C. government is not helping anybody
D. tax per person equals government spending per person
E. tax loopholes and special-interest spending are absent

The correct answers for these two seem wrong. Does any else think the same as me?

I don't want to give the answers for those that haven't taken the test yet.

I got those wrong too, and felt they were unclear.

[seamusTX]

My discussion of these questions is below. Drag the cursor over the message to see it.
30 C seems to have worked a bunch of times. That's pretty much what the government did to end the recession that started with the dot-com crash.

Of course, economists can argue that the recession would have ended anyway. Who knows? There are no do-overs in history.

33 D is the right answer. If the government is spending all its revenue and not borrowing, then the amount of taxes equals spending.

All the other answers for 33 are false statements or irrelevant.

- Jim

[drinks]

I, too, felt 30 should be "C", but I realize it must be wrong as it is the most sensible answer, nothing the government would ever do.
For 33, simple math, if income and outgo are equal , there is no debt.
WhatdoIknow, I bought stocks in '99 and sold them in '08, so I am not very bright.

[seamusTX]

The government can have existing, older debt, even if it is not borrowing money now.

During the late 1990s, the federal government had more income than spending, but it still had debt incurred in earlier years.

The U.S. has never been debt-free since some time before WW II.

- Jim

[SCone]

On #30, is it "government spending" that's being increased. Less tax + more spending = more debt

On #33, the words "per person" throws me a curve.