Saturday Quiz – April 4, 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 #3

• The only essential requirement for a sovereign currency is
• that it is accepted as a means of exchange.
• that it is the only unit in which tax obligations to the government can be extinguished.
• that it possesses intrinsic value which attracts people to demand it.
• If the national government has been paying off debt
• its capacity to expand the economy should a recession arise is unaltered.
• it has less capacity to expand the economy should a recession arise.
• it has more capacity to expand the economy should a recession arise.
• Taxation functions
• to create sellers of real goods and services, so that the government can spend its otherwise worthless currency.
• to ensure the government has enough cash to fulfill its electoral mandate.
• to allow the government to run a budget surplus to provide for the future needs of the society.
• The federal stimulus package will fail
• if it requires so much debt to be issued that it scares global financial markets.
• if it goes into the hands of people who merely save it.
• if it increases imports faster than exports.
• Trade unions who advocate shorter hours (work sharing) as a national solution to rising unemployment
• should be applauded for their willingness to compromise which will also lessen the deficit stimulus that is required.
• are working against their members interests unless the workers total incomes are maintained and they persuade the government to run deficits sufficient to fill the spending gap.
• should be arguing for layoffs because they hurt less people and would lessen the deficit stimulus required.

Sorry, quiz 3 is now closed.

scroll down to find the answers and explanation below.

Quiz #3 answers

• The only essential requirement for a sovereign currency is

Answer: that it is the only unit in which tax obligations to the government can be extinguished.

Explanation: Go to Koala Notes currency for more information.

• If the national government has been paying off debt

Answer: its capacity to expand the economy should a recession arise is unaltered.

Explanation: Go to On things nautical for more information.

• Taxation functions

Answer: to create sellers of real goods and services, so that the government can spend its otherwise worthless currency.

Explanation: Go to A simple business card economy for more information.

• The federal stimulus package will fail

Answer: if it goes into the hands of people who merely save it.

Explanation: Go to More journalistic nonsense! for further information.

• Trade unions who advocate shorter hours (work sharing) as a national solution to rising unemployment

Answer: are working against their members interests unless the workers total incomes are maintained and they persuade the government to run deficits sufficient to fill the spending gap.

Explanation: Go to Shorter hours or layoffs? for further information.