Economics and Finance Flashcard for Students

Front

What is the primary purpose of a central bank in an economy?

Back

To control the money supply and interest rates

Front

Which of the following is an example of a fixed cost for a business? Raw materials, Wages for hourly workers, Utility bills

Back

Rent for office space

Front

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

Back

The price will increase

Front

What is the formula for calculating the Gross Domestic Product (GDP) using the expenditure approach?

Back

GDP = C + I + G + (X - M)

Front

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

Back

No barriers to entry

Front

What does the term "liquidity" refer to in finance?

Back

The ease with which an asset can be converted into cash

Front

If a country's currency appreciates, what is the likely effect on its exports?

Back

Exports will decrease

Front

What is the main function of the stock market?

Back

To facilitate the buying and selling of company shares

Front

Which of the following is an example of a regressive tax?
Options:
Income tax
Sales tax
Property tax
Corporate tax

Back

Sales tax

Front

What is the opportunity cost of choosing to spend time studying instead of working a part-time job?

Back

The money earned from the job