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Cultural Literacy Test - Math & Economics II

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. An interest rate can be
a percentage of an amount of money borrowed
a tax on overseas investments
a proportion of income paid to the federal govern­ment
payment made after an initial down payment
2. According to Keynesian economics,
government action can raise the level of national income
productive labor includes service jobs as well as manufacturing
population increases faster than resources
the division of labor is necessary to production
3. If your company's profit is $5 billion, that is the same as
five million million dollars
fifty thousand million dollars
five hundred million dollars
five thousand million dollars
4. Which of these is generally not considered an economic resource?
5. The average height of three people is always
the height of the one who is neither tallest nor shortest
their height in inches divided by 12
the sum of their heights divided by 3
the height of the shortest plus the height of the tallest
6. The consumer price index shows
the price of a meal in various parts of the United States
changes in costs of various essential goods and commodities
the average wages of an American worker
the percentage of wages spent on food and clothing
7. If a country's imports exceed its exports, it
takes in more in sales than it loses in production
imposes heavy tariffs on goods entering from over­seas
spends more on foreign goods than it makes selling its own goods abroad
buys more foreign goods than other countries do
8. Pi is the ratio of
the total cost to the number of units
a circle's circumference to its diameter
the length of a triangle's hypotenuse to the length of the side opposite the hypotenuse
all of the above
9. Where a monopoly exists, there is no possibility of
increased demand
10. This graph shows
a dramatic increase in population over time
a dramatic decrease in population over time
a decrease followed by a tapering off
a steady increase followed by a downswing
11. A depression and a recession are both periods of
high spending
low business activity
high prices
increased production
12. What is the class struggle?
the ratio of earnings between boss and a worker
a comparison between monarchies and democracies
the historic tension between economic exploiters and the exploited
the contrast in life-styles between middle-class work­ers and the underclass
13. The term credit refers to a promise
to pay in the future for goods or services received now
to add a percentage to every base price on every purchase
to supply collateral on demand to a bank or credit union
to deliver goods or services within a specified period of time
14. The most common kind of tariff is
a form of income tax
a price agreed on by two or more countries
a tax on imports
money paid to cover shipping costs
15. According to Adam Smith, the force of greed is counter­balanced in the economy by
social conscience
church dogma
regressive taxation
16. William Haywood, John L. Lewis, and Samuel Gompers founded
Standard Oil
U.S. Steel
labor federations
the Federal Reserve
17. If a pole is two meters tall, it is
less than two feet tall
about three feet tall
about four feet tall
over six feet tall
18. In a purely capitalist economy,
individuals are free to own property and the means of production
government restrictions are limited
individuals compete to provide goods and services for profit
all of the above
19. Which shape is matched incorrectly to its number of sides?
20. Among the duties of the Federal Trade Commission is
Insuring people's savings in private loan associa­tions
licensing and regulating small businesses
preventing unfair pricing or advertising
administering disability insurance
21. What is a federal subsidy?
assistance to an unprofitable service that benefits the public
a tax added to a product to raise revenue for the state
a business under the control of the federal govern­ment
a division of the welfare system designed to aid families
22. If a baseball team's win-loss ratio is 4 to 1, the team
must have played five games in all
won four times as many games as they lost
won three times as many games as they lost
none of the above
23. The cost-of-living index measures the change in
housing costs over a period of ten years
prices of items needed to maintain a given standard of living
cost of nonessential goods and services over time
average wages from one year to the next
24. Which statement about lines is entirely true?
Parallel lines never meet; perpendicular lines inter­sect once.
Parallel lines never meet; perpendicular lines cross twice.
Parallel lines intersect at a point; perpendicular lines form right angles.
Parallel lines are perpendicular lines that never intersect.
25. Social security programs in the United States include
maximum work hours, minimum wages, and child labor laws
job placement for veterans and farm workers
unemployment compensation, retirement insur­ance, and Medicare
the Job Corps, VISTA, and neighborhood Youth Corps.
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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