Here are sample questions and answers from the "Test of Economic Literacy." Included is the percentage of students correctly answering each question:
1. Of the following, which is the most general cause of low individual incomes in the United States?(a) Lack of valuable productive services to sell
(b) Discrimination against nonunion workers
(c) Unwillingness to work
(d) Progressive tax rates
Correct answer: (a), 29 percent
2. Sandy Smith can take a job paying $10,000 a year when she graduates from high school, or she can go to college and pay $5,000 a year for tuition. Measured in dollars, what is her opportunity cost of going to college next year?
Correct answer: (d), 27 percent
3. Which one of the following groups typically is hurt the most by unexpected inflation?
Correct answer: (b), 17 percent
4. Joining a union and electing representatives to negotiate with the employer is referred to as
(a) a closed shop
(b) the seniority system
(c) collective bargaining
(d) right to work legislation
Correct answer: (c), 60 percent