Mini-quiz 1

1. The motor insurer takes into account which of the following risk factors when setting the motorist’s premium:-

Make, Model and Age of Vehicle

Age, Gender and Occupation of motorist

Claims history of motorist

All of the above

2. An old factory is forced by the government to install anti-pollution devices. Which of the following outcomes is a result of this action?

An increase in social costs and a reduction in negative externalities

An increase in private costs and a reduction in negative externalities

An increase in both social costs and negative externalities

An increase in both private costs and negative externalities

3. What is the role of International Monetary Fund (IMF)?

To help poorer countries with their economic development

To maintain international financial stability in global financial markets

To settle industrial and trade disputes between members

To implement and advance global trade agreements

4. The G20 is a group of the world's most powerful countries that together represent 85% of the world's economy. Which of the following is not one of the G20 countries?

South Africa

Saudi Arabia

Indonesia

None of the above

5. How does the impact of a tariff differ from that of an import quota?

A tariff always generates tax revenues to the government while a quota does not

A tariff affects the domestic price of a commodity while a quota does not

A tariff disadvantages consumers while a quota does not

A tariff encourages increased domestic production, while a quota does not

6. Adam and Eve are painting some railings together. Eve can strip the old paint from 15 metres of railing per hour or paint 7.5 metres of railing per hour. Adam can strip 20 metres or paint 5 metres per hour. Which of the following is true?

Adam has an absolute advantage in both activities

Eve has a comparative advantage in paint stripping

For Adam, the opportunity cost of stripping the paint from 1 metre of railings is painting 4 metres of railings

For Eve, the opportunity cost of painting 1 metre of railings is stripping 2 metres of railings

7. Which of the following is NOT an example of a scam?

Boiler-Room scam

Ponzi scam

Pump and Dump scam

Pascal scam

8. Goods that are produced this year, stored in inventories, and then sold to consumers next year

Count in both this year's and next year's GDP.

Are not counted as a part of GDP.

Count in this year's GDP.

Count in next year's GDP.

9. Which of the following regarding bankruptcy is false?

The bankrupt cannot leave the country without permission from the Official Assignee

The bankrupt cannot incur credit exceeding $500 without disclosing his bankruptcy

The bankrupt cannot be a director of a company under all circumstances

There is no automatic discharge from bankruptcy

10. Unit trusts are suitable for _______________.

Long-term investors

Short-term investors

High-risk takers

Low-risk takers

11. CPF Ordinary Account can be use for the following except:-

Investment

Funding for children’s education

Buying a house

Buying medical insurance