Friday, July 11, 2014

Street Smarts Economics IQ Test with Some of the Answers Provided

Simple Street Smarts Economics IQ Test with Some of the Answers Provided Lex Loeb Contributor Network . Take This simple street smarts economics IQ Test and find out if you are smarter than your government is. You are a police officer. You are patrolling your town's central square when some guy shows up and he is offering free $100 dollar bills to anyone who will take them. What do you do? A. Arrest him and make him keep his money ? B. Tell him you will take the money for yourself and give it away for him? C. Kick Him out of the public square and to give away money somewhere else? D. Tell him what he is doing is illegal and stop or you will fine him. Believe it or not D. is the answer most government trade officials believe is the right policy. Now, You are the owner and captain of a trading ship in the year 1740. You have filled your ship full of all kinds of manufactured goods from England and France. You head out across the ocean to China and go into a port there because you want to buy tea. Shrewd Chinese traders come to the dock to trade with you and they bring an amazing array of high quality in demand products including tea you can easily sell for a lot more money in England than the Chinese are offering it to you for. Unfortunately the Chinese look at the goods you have for trade and they can't see any need for knit whool fabrics or cotton cloth since they have much better silk. The Chinese traders want gold and silver coins but are also willing to take British pound IOU bank notes. You have a ship full of stuff they don't really want. What do you do? A. Give them gold and silver coins for what you want to buy and British IOU bank notes and give all the stuff you have away as gifts to people on the docks to make as much room on the ship to fill it with as much high quality merchandise as you can fit in. B. Leave port without trading anything. C. Point Guns at the Chinese and tell them to take the goods they don't want in return for the crap you have as balast in your ship. .

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