WHAT DO YOU KNOW ABOUT ECONOMICS? Adam Smith defined economics as "an inquiry into the nature and causes of the wealth of nations." Alfred Marshall offered an alternative option: Economics is the study of humans "in the ordinary business of life." No matter how you define it, economics shapes and influences our lives. Test your knowledge of all things economic by taking this brief quiz.
1. The first version of the board game Monopoly was created to help people understand the:
a. Harm done by monopolies
b. Advantages of monopolies
c. How family members think and collaborate
d. None of the above
2. What is the paradox of thrift?
a. Saving more can lead to economic growth
b. Shoppers can find valuable items in thrift stores
c. Saving more can lead to economic slowdown
d. Spending less today could mean having more in retirement
3. Which of the following is not thought to cause prices to increase?
a. The Fed raising rates
b. Consumer spending
c. Demand for goods increasing
d. People thinking prices will move higher
4. Generally, macroeconomics considers the role of governments in a market economy. What historical event led to the study of macroeconomics?
a. The Credit Crisis of 1772
b. World War II
c. The Great Depression
d. The Oil Crisis of 1973
The answers can be found below.
Answers:
You can reach out to Greg Womack with any questions at greg@womackadvisers.com or (405) 340-1717.
Best regards,
Womack Investment Advisers, Inc.
Sources:
https://www.investopedia.com/ask/answers/070615/what-difference-between-earnings-and-profit.asp
https://lipperalpha.refinitiv.com/wp-content/uploads/2022/10/TRPR_82201_20221028.pdf
https://www.reuters.com/business/energy/wrapup-global-oil-giants-rake-massive-profits-third-quarter-2022-10-28/
https://www.barrons.com/articles/stock-market-dow-nasdaq-dot-com-bubble-51667004324?refsec=the-trader&mod=topics_the-trader (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2022/10-31-22_Barrons_Shades%20of%20the%20Dot%20Com%20Bust_4.pdf)
https://www.bea.gov/sites/default/files/2022-10/gdp3q22_adv.pdf [See Table 4]
https://www.barrons.com/livecoverage/stock-market-today-102822/card/stocks-drop-after-brutal-week-for-big-tech-earnings-BpI0odeClhgz6Ovfw41T (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2022/10-31_22_Barrons_Stocks%20Rallied%20After%20a%20Brutal%20Week%20for%20Tech%20Earnings_6.pdf)
https://www.bloomberg.com/markets/stocks
https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202210
https://corporatefinanceinstitute.com/resources/knowledge/economics/what-is-economics/
https://www.brainyquote.com/quotes/john_kenneth_galbraith_105472?src=t_economics
https://www.atlantafed.org/economy-matters/quiz/2018/0621-terms-and-conditions (or go to https://resources.carsongroup.com/hubfs/WMC-Source/2022/10-31-22_Federal%20Reserve%20Bank%20of%20Atlanta_11.pdf)
https://research.stlouisfed.org/publications/page1-econ/2012/05/01/wait-is-saving-good-or-bad-the-paradox-of-thrift/
https://www.thebalancemoney.com/causes-of-inflation-3-real-reasons-for-rising-prices-3306094
https://www.jstor.org/stable/2077848