Archive for the ‘Economics’ Category

Real World Graduation, Question 94: Benefits of Welfare

RealWorldGraduation_Question_94_Benefits_of_Welfare   <– PDF

In the 1960’s the federal government instituted a program of assisting young women who had illegitimate children. This aid came in the form of cash payments, housing at low rents, and assistance for food and medicine via government-issued stamps that could be used as cash for most grocery and medical items.  In what ways were these programs beneficial to the recipient?

a) It allowed the young women to provide for their children in a safe and secure environment, without the violations of privacy and crowding that would prevail if she had continued to live with her parents.

b) It allowed them sufficient spare time to pursue education or other career training.

c) It allowed them to live independently, and although they were initially poor, they would eventually be able to rise to the middle class.

d) It provided them with an additional income if she chose to get married, even if her husband was working.

e) All of the above.

(The answer is on p. 2 of the PDF.)

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Real World Graduation, Question 88: Social Security

RealWorldGraduation_Question_88_Social_Security  <– PDF

Both the question and answer are contained in the PDF file, since the question requires a graphic that does not translate well into this format.

Thanks for reading,

EDD

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Real World Graduation, Question 82: Pennies

RealWorldGraduation_Question_82_Pennies   <– PDF

There has been some discussion in recent years about the utility of small-denomination U. S. coins such as the penny and the nickel.  Some people have concluded that we would be better off to abolish these coins.  What is the most plausible reason for abolishing the penny?

a) The buying power of the penny is so low as to not be worth continuing; for example, there is no such thing as “penny candy” any more.

b) The penny is too heavy to justify carrying around, when considered with regard to its buying power.

c) The effect of monetary inflation has made penny nearly worthless. People don’t even collect change if it is only a few cents; people won’t stop to pick up a penny on the street.

d) It has always been an inconvenience, since it is nearly the same size as a dime.

e) Some combination of a), b), and c).

(The answer is on p. 2 of the PDF.)

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Real World Graduation, Question 81: Test Drives

RealWorldGraduation_Question_81_Test_Drives   <– PDF

A person went to a new car dealer to buy a new car. He found one that he was interested in, and the dealer offered to let him take a test drive, but required that the prospective buyer first provide his drivers license so the dealer could make a copy of it before the test drive.  Why did the dealer want to see the license and make a copy?

a) To check with the police to see if the prospective buyer has any outstanding arrest warrants and report him to the local police.

b) To make sure the prospective buyer is legally allowed to buy a car.

c) To see if the prospective buyer has any unpaid parking tickets, and report him to the local parking violation bureau.

d) To verify that the prospective buyer has adequate automobile insurance, in case of an accident during the test drive.

e) Some combination of the above, which varies from state to state depending on the state and local laws.

(The answer is on p. 2 of the PDF.)

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