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Cultural Literacy Test - Math & Economics I

Take your time with the following cultural literacy test. If you select the correct answer it will be highlighted in green and the related information will be shown. If the first answer selected is incorrect, it will be highlighted in yellow, indicating try again. If the second answer selected is incorrect, the correct answer will be displayed. See the Bibliography to learn more about this test.

Wrong Answer Try Again Correct
1. Which of these could be considered an asset?
income tax
a checking account
Interest payments paid to a creditor
a car that is rented or leased
2. Which of these figures is three-dimensional?
a point
a line
a square
a cylinder
3. Which country listed has the fewest nuclear reactors?
the United States
West Germany
Great Britain
4. What is the Dow Jones Composite Average?
the average of the closing prices of sixty-five stocks on the New York Stock Exchange
the average of the closing prices of all the stocks on the New York Stock Exchange
the average of the midday prices of all government bonds
the average interest rates offered by banks
5. What is the primary job of the Federal Reserve Board?
to oversee loans to foreign nations
to regulate the federal budget
to regulate money supply and interest rates
to monitor the nation's store of gold
6. What is this number in Arabic numerals: MDCCLXVII?
7. In economics, what is a market?
any context in which the sale and purchase of goods and services occurs
a place where edible goods are sold
an economic system that depends on price fluctua­tions
activities associated with the sales and distribution of products
8. Who was Euclid?
a Greek mathematician who calculated the value of pi
a French philosopher who developed analytic ge­ometry
a Greek mathematician who developed the study of plane geometry
a Greek mathematician who developed a formula for computing the area of a triangle
9. What was Thomas Malthus' conclusion about popula­tion growth?
that population can be controlled by genocide
that population will grow faster than food supply, leading to poverty
that population will grow faster among lower classes than among upper classes
that population will eventually decrease in wealthy European countries
10. 3 to the sixth power, or 3^6, equals
11. How is the gross national product measured?
by monitoring investment in foreign markets
by counting the money spent to buy, or received for producing, goods and services
by measuring the change in the value of the dollar over time
by measuring the gap between national consump­tion and national production
12. What is the size of A?
13. Under what circumstances might bankruptcy be de­clared?
if a person does not pay his creditors on a timely basis
if a bank is robbed at gunpoint
if the New York Stock Exchange is closed
if a war or national emergency is declared by federal authorities
14. What is required to make mass production cost-effec­tive?
many factories producing the same item
a large number of units being produced
a city-dwelling workforce
a growing population
15. What does the Pythagorean theorem state?
The area of an equilateral triangle is one-fourth the square of a side multiplied by the square root of 3.
The diagonal of any square is equal to the length of a side multiplied by the square root of 2.
In any triangle the sum of the three angles is equal to 180°.
In a right triangle the square of the hypotenuse is equal to the sum of the squares of the legs.
16. Which of these situations illustrates the laws of supply and demand?
Prices of beef rise, and the demand for beef lessens.
A large quantity of potatoes hits the market; the price of potatoes drops.
As the price of wheat rises, suppliers bring more wheat to the market.
all of the above
17. What is inflation?
high interest rates on government securities
an overall trend toward rising prices, occurring for reasons about which economists disagree
economic stagnation caused by unemployment
an overall trend toward rising wages, caused either by a shortage of workers or by the influence of trade unions
18. Why was the FDIC formed?
to regulate the levels of income taxation
to protect citizens against strikes by government employees
to protect bank depositors from the effects of a depression
to protect consumers against monopolization
19. How many inches are there in a yard?
20. Why might a country practice protectionism?
because of high unemployment and large trade deficits
because of efficient labor practices and low income taxes
because of high foreign oil prices and a stable dollar
because of inflation and high interest rates
21. What is the purpose of a mortgage?
to protect the lender against nonpayment by the homeowner
to protect the homeowner against property damage
to pay for home improvements
to enable homeowners to make downpayments
22. Why does a corporation consider an initial public offer­ing?
to avoid a takeover by a larger corporation
to export goods through new joint ventures
to raise capital
to legalize business practices with its board of di­rectors
23. What kind of income tax do Americans pay?
proportional income tax
progressive income tax
regressive income tax
value added income tax
24. When does a federal deficit exist?
when the amount of taxes exceeds the amount of income
when government salaries exceed government ex­penditures
when government spending exceeds government revenues
when actual income exceeds projected income
25. When is a stock market bullish?
when recession threatens
when stock prices are fluctuating
when stock prices are rising and investment is up
when trading is heavy
Excellent. You are on your way to true cultural literacy.
Good. You have more than a passing knowledge of this subject.
Fair. You have a competent grasp of many aspects of this subject.
Poor. You could use some improvement in this area.
Below 60%
Time for literacy training.
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