Saturday Quiz – March 28, 2009

Welcome to the billy blog Saturday quiz. The quiz tests whether you have been paying attention over the last seven days.

See how you go with the following five questions. Your results are only known to you and no records are retained.

Quiz #2

• Hours-based measures of labour underutilisation will always be higher than person-based measures
• if the unemployment rate rises.
• if the unemployed want part-time work only.
• if there is underemployment.
• While budget surpluses withdraw private sector purchasing power
• they also undermine the overall capacity to save.
• they do help the economy save income.
• they help keep interest rates down.
• The federal budget deficit can be excessive
• if household savings are not used efficiently.
• if investors cannot get funds to build productive infrastructure.
• if the net government spending exceeds the private desire to save.
• The US government's latest plan (the Public-Private Investment Program) will
• will not impede the capacity of the US Government to create full employment.
• undermine the capacity of fiscal policy to stimulate demand because it is using public funds which could be used elsewhere.
• help stabilise the economy because it will clear out all the toxic assets in the private banks.
• The current trend to increasing budget deficits
• will burden future generations if it fails to generate real growth in employment and national income.
• will burden future generations only if the government has to pay back the debt.
• will help future generations if it is also accompanied by quantitative easing which eases the debt burden.

Sorry, quiz 2 is now closed.

scroll down to find the answers and explanation below.

Quiz #2 answers

• Hours-based measures of labour underutilisation will always be higher than person-based measures

Answer: if there is underemployment.

Explanation: Please consult the blog Labour market tanking for more information.

• While budget surpluses withdraw private sector purchasing power

Answer: they also undermine the overall capacity to save.

Explanation: Please see the blog Budget surpluses are not saving for further information.

• The federal budget deficit can be excessive

Answer: if the net government spending exceeds the private desire to save.

Explanation: Please see the blog Size of deficit 101 for further information.

• The US government's latest plan (the Public-Private Investment Program) will

Answer: will not impede the capacity of the US Government to create full employment.

Explanation: Please see the blog US detox lunacy for further information.

• The current trend to increasing budget deficits

Answer: will burden future generations if it fails to generate real growth in employment and national income.

Explanation: Please see the blog Size of deficit 101 for further information.