The quiz is based on an economic model of the Theory of Economics named after classical philosopher John Locke. His theory is not unlike modern monetarist theories of economics. His basic economic theory says that the government should just keep it money as is so there is no economic pressure or inflation. They should also avoid creating too much credit because that also leads to economic distortions and too much spending. This sounds like free-market capitalism to me.
These monetarist school of thought are followed by most politicians and economists in modern day. In fact, recently in an article in the New York Times Magazine, Nobel Peace Prize winner Martin Luther King Jr. criticized modern economics and its obsession with profit margins. He said, “Profit is the root of evil.” This is the kind of thinking that takes my nation’s politics and markets quiz for me. That is if they are not making enough money, why should they increase prices? And if they increase prices too much, they might lose customers and end up bankruptcy.
In fact, if there is too much inflation in a market, the prices are likely to rise. In other words, as long as there is a consistent demand for goods and services, there is no problem in the running of the economy and there will be no problems of price rise. The only scenario that might lead to inflation is hyperinflation – which in this case would lead to the collapse of the economy. I hope you will please consider all this.
So, what would cause hyperinflation in a nation’s economy? The answer is simple: high price levels for goods and services lead to higher wages and salaries, which in turn lead to greater levels of consumption. As more people spend, more money gets spent, thus, inflation. This is all about supply and demand – if there is too little supply, the prices go up. If there is too much supply, then prices drop.
In addition, there is the power of the dollar. It has been a leading global currency and it has the power to create demand. Thus, there are times when a country needs to buy more U.S. dollars in order to sell more goods and services. Of course, the country cannot do that every time it wants to sell because it will lose its value and the balance will be destroyed. This is the same thing as inflation. But, if we follow the basic economic laws, then we know that when there is too much supply and there is not enough demand, then the economy will experience hyperinflation.
Now, let us focus on how to study economics in detail. We know that the best way to learn something is by actually doing it, and this is also true when it comes to economics. We will look into developing a good trading strategy that works for any nation – developed or developing, for that matter. We will also discuss how to take the politics out of economics. Finally, we will see how various economic textbooks are written, and how they affect our understanding of economics.
You might think that taking a nations politics and markets quiz for me will be boring. Well, you can’t deny that it will teach you a lot about economics, because it will expose you to all the basics of economics. If you want to understand why certain policies were adopted in a certain country, then you will need to study economics. It is one of the key skills needed to master other subjects such as business management, for example. So, what are you waiting for?
