One out of 10 high school seniors who took a new national test could analyze the impact of the jobless rate on the economy. Two out of five knew enough about tariffs to determine why domestic industries would push for them. And three out of five could identify factors driving up the national debt.
Those were some of the key results released Wednesday from the first National Assessment of Educational Progress to measure economics literacy among high school students.
About 42 percent of 12th graders tested demonstrated proficiency in economics. “While there is clear room for improvement, the results are not discouraging,” said Darvin Winick, chairman of the National Assessment Governing Board.
Here are some test questions, from nationsreportcard.gov:
1. Which of the following is a policy tool of the Federal Reserve?
A. Raising or lowering income taxes
B. Increasing or decreasing unemployment benefits
C. Buying or selling government securities
D. Increasing or decreasing government spending
(21 percent answered correctly)
2. Two countries are currently trading with each other. The countries agree to remove all trade restrictions on products traded between them. Which of the following is most likely to decrease?
A. The variety of goods available
B. The prices of imported goods
C. The quality of goods available
D. The amount of imported goods
(51 percent answered correctly)
3. Which of the following has been most important in reducing poverty over time?
A. Taxes
B. Economic growth
C. International trade
D. Government regulations
(53 percent answered correctly)
Answers: 1. C; 2. B; 3. B
