|National Economics Test Results|
Here are the answers and the percent correct from three groups:
|Question and Answer||Gen. Public||H. S.
|% Correct||% Correct||% Correct|
|1. The best description of the purpose of the Federal Reserve is(A) The institution responsible for monetary policy/money supply
|2. What is the basic purpose of profits in our market economy?(B) Lead businesses to produce what consumers want.
|3. Who sets monetary policy in the United States?(D) Federal Reserve
|4. The prices of meat products in a competitive market are determined
by (C) Supply and demand.||64||72||79|
|5. The purchasing power of people's incomes is most affected by (A) the inflation rate.
|6. Who makes fiscal policy in the United States?(A) President and Congress
|7. What is an example of fiscal policy?(C) Federal Income Tax Rate Change
||23||28||48||8. Which one of the following is most likely to improve the wages
of American workers? (B) An increase in productivity.
|9. What is the current national rate (percent) of civilian
unemployment? (B) 4% - 6%.
|10. Which one of the following is the most widely used measure
of inflation? (A) The Consumer Price Index.
|11. What is the current annual rate of inflation? (B) 2% - 3%
|12. What economic policy would most likely be used to combat a recession when inflation is low? (B) An increase in the money supply.
|13. Economic growth is measured by a positive change in which of the following? (C) The Gross Domestic Product.
|14. There is a deficit in the federal budget when: (A) Federal
government spending is greater than federal tax revenues.
|15. If the U.S. dollar increases in value, what will most likely be
the effect on U.S. exports of goods to other countries? (B) Exports would decrease.
|Mean % Correct overall||40.7%||37.1%||54.4%|
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