Quiz VIII: The Stock Market

What are some things you can do with income?

• Evade paying taxes

• Invest it

• Spend none of it

• All of the above

Which of the following would MOST describe an investment?

• Buying a used car

• Buying the new pair of Jordans

• Buying stock

• Putting money in a savings account

Which of the following describes a capital good?

• WalMart Stock

• Apple Stock

• Capital Gains Tax

• A welding machine

Which of the following options correctly describes the risk/reward relationship?

• High Risk/Low Reward

• High Risk/High Reward

• Low Risk/High Reward

• None of the above

Sally purchased Amazon stock in 2005 and sold it in 2015. Sally has realized a....?

• Dividend

• Capital Gain

• Payday

• Shopping Spree

The chart in the image shows that with an increasing price per share (of stock), the quantity supplied....

• Decreases

• Increases

• Stays the Same

• None of the above

The data in the chart makes sense because as share price increases...

• More shareholders become less likely to sell

• Less people are willing to buy

• More shareholders are tempted to sell

• Capital Gains Tax decreases

Which of the following is a possible effect of a stock buyback?

• Share price decreases

• Share Price Increases

• Business goes bankrupt

• Shares Outstanding increase