The Region

Economic Literacy Survey Responses Based on Economic Education

Published June 1, 1999  |  June 1999 issue

Questions and Answers

Without Economics
221 Respondents

With Economics
176 Respondents

Q1. Which of the following occurs when one country trades wheat to another country in exchange for oil?
   A: Both countries gain.

58.8%

71.6%

Q2.What is the most important task of all economies?
   A: To make the best use of scarce resources.

23.5 

31.8 

Q3. When a country's people and its other resources are fully employed, which of the following must be true before more of any one item can be produced?
   A: There has to be less production of other products.

13.1 

22.2 

Q4. When industries or countries specialize in producing goods and services, does this result in ...?
   A: Greater economic interdependence.

40.7 

54.0 

Q5. What is the most essential characteristic of a market economy?
   A: Active competition in the marketplace.

55.7 

76.7 

Q6. In a market economy, individuals pursue their own self-interest. Does this serve the public interest because of the ...?
   A: Operation of competitive markets.

35.7 

49.4 

Q7. What would happen to employment if the government mandated a minimum wage above what employers currently pay?
   A: Employment would go down.

40.3 

51.7 

Q8. Why do professional sports players generally earn more than farmers and steelworkers?
   A: Good sports players are more scarce, given the demand for their services.

19.5 

35.2 

Q9. Which of the following approaches to pollution control makes the best use of a country's economic resources?
   A: Controlling pollution as long as the extra benefits are greater than the extra costs.

28.1 

48.9 

Q10. Which of the following limits an economy's potential output?
   A: The quantity and quality of labor, capital and natural resources.

27.1 

38.6 

Q11. If your annual income rises by 5 percent while prices of the things you buy rise by 10 percent ...
   A: You are worse off.

87.3 

93.2 

Q12. What must the government do to reduce high inflation?
   A: Decrease both spending and the money supply.

24.9 

30.1 

Q13. Why are private businesses not likely to operate a lighthouse?
   A: The light from the lighthouse can be used even by ships that do not pay a fee for the service.

35.3

38.1

Total Score

38%

49%


Return to: How Does Economic Education Impact Economic Literacy?

Top

 
Latest Articles