Here are the answers with discussion for this Weekend’s Quiz. The information provided should help you work out why you missed a question or three! If you haven’t already done the Quiz from yesterday then have a go at it before you read the answers. I hope this helps you develop an understanding of Modern…
The Weekend Quiz – August 19-20, 2017
Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blogs I post. See how you go with the following questions. Your results are only known to you and no records are retained.
Quiz #439
- 1. A sovereign national government requires taxation revenue in order to spend
- False
- True
- 2. The posting of a fiscal surplus indicates that the national government has sought to reduce aggregate spending in the economy.
- False
- True
- 3. To redistribute national income back to workers from capital, wages have to grow faster than the inflation rate.
- False
- True
Sorry, quiz 439 is now closed.
You can find the answers and discussion here
The word ‘revenue’ in question 1 is sneaky
Yes Andy I was undone by that owrd too!
Three out of three! Woohoo!
Question 1 still making me scratch my head.
Would love to see the solution. =)
I got Q1 right (and 2 & 3), but I don’t think the reason is anything to do with the word ‘revenue’. We’ll see tomorrow.
In Q1, would the answer have something to do with giving the government issued money value?
According to the ‘results’ I got question 1 wrong. But I think the ‘results’ is wrong. MMT says government spending always comes first and that if you go back to the original issuance of the currency this becomes quite clear. The government has to spend the currency into the economy first in order to be able to tax in that currency afterwards. I will be even more interested in the quiz answers than usual. Thanks for the quiz!
I’m curious about Q1 too.
I reckon question one means draining liquidity through taxation to give fiscal space to spend in certain other areas.