{"id":49474,"date":"2022-03-25T11:30:58","date_gmt":"2022-03-25T01:30:58","guid":{"rendered":"https:\/\/billmitchell.org\/blog\/?p=49474"},"modified":"2022-03-25T11:30:58","modified_gmt":"2022-03-25T01:30:58","slug":"the-weekend-quiz-march-26-27-2022","status":"publish","type":"post","link":"https:\/\/billmitchell.org\/blog\/?p=49474","title":{"rendered":"The Weekend Quiz &#8211; March 26-27, 2022"},"content":{"rendered":"<p>\t\t\t\tWelcome to <strong>The Weekend Quiz<\/strong>. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.<br \/>\n<!--more--><\/p>\n<p><a href=\"https:\/\/billmitchell.org\/blog\/wp-content\/uploads\/2020\/05\/Quiz_Image.png\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/billmitchell.org\/blog\/wp-content\/uploads\/2020\/05\/Quiz_Image.png\" alt=\"\" width=\"296\" height=\"180\" class=\"alignnone size-full wp-image-44957\" \/><\/a><\/p>\n<p>These were the Quiz questions for the third week of my edX MOOC &#8211; <strong>Modern Monetary Theory: Economics for the 21st Century<\/strong>.<\/p>\n<p>I promised students that I would provide answers and analysis for them after the course finished.<\/p>\n<h4>Quiz #631<\/h4><ul>\n<li>1. Which of these situations represents an inflationary episode in the macroeconomic sense?  <ol> <li>(a) On July 1, 2000, the Australian government introduced a Goods and Services Tax of 10 per cent on most goods and services (with some exemptions). In the September-quarter 2000, the Consumer Price Index rose by 6.1 per cent.<\/li> <li>(b) The press reported that Australias property prices rose at their fastest rate since 2003 in February 2021.<\/li> <li>(c) The Consumer Price Index rose by 9 per cent in month one, six per cent in month two and 3 per cent in month three.<\/li> <li>(d) The Consumer Price Index rose by 3 per cent in month one, 6 per cent in month two and 9 per cent in month three.<\/li> <\/ol><\/li><ul><li>(a)<\/li><li>(b)<\/li><li>(c)<\/li><li>(d)<\/li><li>(a) and (b)<\/li><li>(b) and (c)<\/li><li>(c) and (d)<\/li><\/ul>\n<li>2. In 2008, the consumer price level in Zimbabwe rose by 157 per cent. Between 1998 and 2008, real GDP fell by 50.7 per cent. The hyperinflation arose mainly because:<\/li><ul><li>(a) The Zimbabwean government was spending too much.<\/li><li>(b) The Reserve Bank of Zimbabwe was issuing too much money.<\/li><li>(c) Private banks were issuing too much credit.<\/li><li>(d) The supply side of the economy contracted so much that previously normal (non-inflationary) levels of spending growth were now vastly excessive<\/li><\/ul>\n<li>3. An employment buffer stock scheme involves the government offering an infinite demand for labour. This means that:<\/li><ul><li>(a) the supply of labour is fixed.<\/li><li>(b) the scheme will expand and contract on demand from workers for jobs.<\/li><li>(c) the government allocates a fixed amount of currency to run the program.<\/li><li>(d) unproductive jobs can be created at will.<\/li><\/ul>\n<li>4. A major criticism of mainstream economists of the use of fiscal deficits is that they crowd out productive private spending. That criticism errs because:<\/li><ul><li>(d) Interest rates are now at very low levels.<\/li><li>(b) Banks create deposits when they make loans to credit-worthy customers.<\/li><li>(c) The central bank is part of government.<\/li><li>(a) A currency-issuing government can buy whatever is for sale in its own currency.<\/li><\/ul>\n<li>5. Commercial banks are required to hold reserve accounts with the central bank for which reason:<\/li><ul><li>(a) To protect their shareholders from losses.<\/li><li>(b) To ensure their depositors can earn interest.<\/li><li>(c) To ensure that all daily transactions in the economy that involve claims between banks can be resolved without any cheques bouncing.<\/li><li>(d) To make it easier for government to know what is going on in financial markets.<\/li><\/ul>\n<\/ul>\n\n\t<h3>Sorry, quiz 631 is now closed.<\/h3>\n\t<p> You can find the answers and discussion <a href=\"\/blog\/?p=50733\">here<\/a><\/p>\n\t\n","protected":false},"excerpt":{"rendered":"<p>Welcome to The Weekend Quiz. The quiz tests whether you have been paying attention or not to the blog posts that I post. See how you go with the following questions. Your results are only known to you and no records are retained.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[58],"tags":[],"class_list":["post-49474","post","type-post","status-publish","format-standard","hentry","category-saturday-quiz","entry","no-media"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/posts\/49474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49474"}],"version-history":[{"count":0,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=\/wp\/v2\/posts\/49474\/revisions"}],"wp:attachment":[{"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/billmitchell.org\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}