Economic Literacy Survey Responses Based on Economic Education

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%