Neo--
Okay....
ome basic economics questions:
1.)Generally, when the Fed raises interest rates, economic activity....
a.speeds up b.slows down c.is unaffected (b)
2.)Historically, there are higher returns on....
a.bonds b.stocks c.bank accounts (b)
3.)The worst effect of inflation is that it....
a.raises prices b.raises salaries c.erodes savings(depends if you are on a fixed income(c) if not, (a)
4.)Regulation raises prices to consumers by increasing...
a.resentment b.the bureaucracy c.compliance costs
You want (c) and that is true frequently, but not the whole story. regualtion stops monopolies from charging higher prices, stops other types of collusion, stops crime and abuse which aids efficiencies, stops pollution which can lower health care costs significantly and increase productivity, lower oh the job injuries which ulitmately keps labor and helath care costs down, and myriad other types of benefits. Over regultion is bad, there is much regulation that is good.
5.)There is positive correlation between risk and....
a.danger b.buying stocks c.return (c)
6.)The best way of managing investment risk is through....
a.diversification b.timidity c.putting everything into one stock)a)
7.)Economic efficiency is promoted through....
a.free markets b.pork barrel projects c.unions
again, (a) is right but not the whole story. free markets run amok can lead to inefficiency. Remember the meatp[acking industry in chicago? Unions kept massive abuse of the workers from taking place, which helped health care, injuries on the job etc. without going into a rambling dissertation, it is right to a point, but not totally right.
8.)The economic progress of citizens is best promoted through....
a.tight labor markets b.entitlements c.universal college attendance (c)
9.)The difficulty of predicting the course of innovation means that it is best to...
a.leave long term investment decisions in the hands of Washington bureaucrats
b.decentralize investment through a free market in capital
c.have investment decisions made on Capitol Hill(b) but that doesn't mean the the Feds don't have a role to play.
10.)The introduction of socialism in the Soviet Union created...
a.universal prosperity b.a corrupt class defined by party affiliation
c.liberty, equality, and fraternity
(b) however that poiints to the fact that extremism of any sort leads to abuse. |
