Economics Literacy Quiz

[Electric Wizard]

BigNorseWolf wrote:

I'm hiding in your closet wrote:

When I look at America's infatuation with economics, I am reminded about what I read in a class about the history of the USSR:

Its easier to justify oppression when its the inevitable law of the universe rather than when its something that one group of people deliberately do to another.

Isn't that a law of the universe?

[pepsi the voice of a new generation]

19/20

Think one of those questions is defective.

[HWalsh]

I could get 19/20...

Question 20 is wrong. A should be the proper one.

Anyway, the problem is that I answered what the test wanted rather than what is correct.

Example:
The one with long lines...

The product is too cheap is horse poop. There are many other reasons. The real answer is demand is high. Following this, the best idea is to raise prices until you meet your exact supply.

Namely, if you make 50, then the price should be so high that people only buy 50.

[thejeff]

HWalsh wrote:

I could get 19/20...

Question 20 is wrong. A should be the proper one.

Anyway, the problem is that I answered what the test wanted rather than what is correct.

Example:
The one with long lines...

The product is too cheap is horse poop. There are many other reasons. The real answer is demand is high. Following this, the best idea is to raise prices until you meet your exact supply.

Namely, if you make 50, then the price should be so high that people only buy 50.

Alternately the answer could be that supply is too low.

For example, there are still long lines in Puerto Rico for fuel and clean water. Obviously, the correct response is to raise prices until most people can't afford them.

For 20, I don't see how "Large federal-budget deficits Increase U.S. exports "