Fundamentals of Economics and Finance

Front

What is the basic economic problem that all societies face?

Back

Scarcity

Front

Which of the following is a characteristic of a perfectly competitive market? Few sellers, Unique products, Price makers

Back

Free entry and exit

Front

If the demand for a product increases, what is likely to happen to the price of the product, assuming supply remains constant?

Back

The price will increase

Front

Which of the following is an example of a fixed expense in a personal budget? Groceries, Rent, Entertainment, Dining out

Back

Rent

Front

What is the primary purpose of a stock market?

Back

To facilitate the buying and selling of company shares

Front

Calculate the simple interest earned on a principal of $1000 at an interest rate of 5% per annum for 3 years.

Back

$150

Front

Which of the following best describes a bond? A share of ownership in a company, A loan made to a corporation or government, A savings account with a fixed interest rate, A type of insurance policy

Back

A loan made to a corporation or government

Front

If the supply of a product decreases while demand remains constant, what is likely to happen to the equilibrium price?

Back

It will increase.

Front

Which of the following is a type of financial market where currencies are traded? Stock market, Bond market, Forex market, Commodity market

Back

Forex market

Front

Back