Tuesday, October 18, 2011

Economics Quiz Time!

A fun little quiz to see how much of the basics of the topic of the economy some of the people posting comments here understand.
  1. How much of the money supply exists as physical currency?
  2. How exactly does Quantitative Easing work (hint--printing money is a failing answer)?
  3. What are the two types of government debt?
  4. What is a budget deficit?
  5. What is the difference between government deficit and government debt?
  6. Define in relation to each other:
    • Primary deficit,
    • total deficit
    • debt
  7. What is a Structural deficit?
  8. What are the forms of Government Indebtedness?
  9. What is fractional reserve banking?
  10. What is full reserve banking?
  11. What are some of the potential policy solutions for budget deficits and critiques of each?
  12. What is the difference between Gross Domestic Product (GDP) and Gross National Product (GNP)?
  13. How much national debt is too much?
  14. Is inflation a bad thing for an economy?
  15. What is a commodity based monetary system?
  16. What is a share of stock?
Extra Credit--Why does Ron Paul dislike the Federal Reserve Bank?

Sort of economically related: In the the Westminster, or Parliamentary, system, the defeat of an appropriations bill (a bill that solely concerns taxation or government spending) has what result? Why does this not have the same effect under the US Constitution?

I will say that there is more than one trick question on this quiz!

I'll post my answers in a few days.


  1. Laci - you never followed up with the answers... I was interested in reading the correct answers to your quiz.

  2. Not so fast!

    They're coming tomorrow.

  3. I forgot to ask what are the sources of government "income": Taxes of various sources and issuance of debt (bonds)