With the economy as the number one story now that the election is out of the way, there's a lot of evidence that few Americans have the tools to understand how it works.
A recent Jump$tart survey of high seniors found that the average high school senior scores about 50% on a basic financial literacy quiz. Worse, only about 65% of adult respondents were able to say how much is left if you subtract 25% from eight.
This raises an interesting question: If people can't do basic arithmetic, how can they possibly understand complex issues like the National Debt as a percentage of GDP, the pros and cons of stimulus packages, or the dangers of deflation compared with inflation?
To see how you're doing, take this very quick, very basic 10-question Economics 101 quiz from Kiplinger's.
If you score less than an 80% please, for the sake of future generations, order a copy of Naked Economics. It's a fun read and it will make you smarter.
Take a 10-question economics 101 quiz!