National Economics And Financial Management Quiz
Get ready to challenge your understanding of markets, money, and management strategies with the National Economics And Financial Management Quiz. Designed for students, professionals, and enthusiasts alike, this quiz offers a comprehensive assessment of your knowledge in economics and financial management.
Whether you're aiming to brush up on macroeconomic theories, explore microeconomic concepts, or understand the intricacies of corporate finance, our quiz covers a wide array of topics to test and expand your understanding. As you navigate through each carefully crafted question, you'll engage with practical and theoretical aspects of economics that are essential for academic success and professional excellence. Read more
Participate in this quiz to measure your skills against national standards, discover areas for improvement, and solidify your grasp of economic principles and financial strategies. Perfect for anyone looking to deepen their understanding or simply enjoy a challenging educational experience, this quiz is an excellent opportunity to see how well you can navigate the complex world of economics and finance.
National Economics And Financial Management Questions and Answers
- 1.
Specialisation and trade will increase total output available. Therefore, it is best for a person to specialise in the production of the good in which he has ___________.
- A.
More resources
- B.
Absolute advantage
- C.
Comparative advantage
- D.
Higher opportunity cost
Correct Answer
C. Comparative advantageExplanation
Specialization and trade allow individuals or countries to produce more efficiently and trade for other goods. It is best for a person to specialize in the production of the good in which they have a comparative advantage. This means they can produce the good at a lower opportunity cost compared to other goods. Unlike absolute advantage, which focuses on the ability to produce more of a good using the same amount of resources, comparative advantage considers the trade-offs and benefits of focusing on specific goods where they are relatively more efficient. This principle forms the basis of international trade and economic theory on the benefits of specialization.Rate this question:
-
- 2.
In price discrimination, who should be charged the lowest price?
- A.
The poorest
- B.
The group with a positive price elastic demand
- C.
The group with a negative inelastic demand
- D.
The group with a perfectly elastic demand
Correct Answer
D. The group with a perfectly elastic demandExplanation
In price discrimination, the group that should be charged the lowest price is the one with a perfectly elastic demand. This means their demand for a product is highly sensitive to changes in price; even a small increase in price can lead to a significant drop in the quantity demanded. For such consumers, any higher price would lead them to stop purchasing the product entirely, hence charging a lower price maximizes the seller's revenue from this group by ensuring they continue to buy the product. This strategy allows sellers to capture the maximum possible market share and revenue from different segments based on their price sensitivity.Rate this question:
-
- 3.
The table below shows the changing Certificate of Entitlement (COE) premium for cars smaller than 1600cc in 2009. Month Price March $3864 June $11690 October $16231 December $17615 Which reason is false about the cause of the changing price pattern?
- A.
Fall in supply of COE
- B.
Fall in income of consumers
- C.
Rising cost of public transport
- D.
None of the above
Correct Answer
C. Rising cost of public transportExplanation
The false reason about the cause of the changing price pattern for the Certificate of Entitlement (COE) premium for cars is the "Rising cost of public transport." The COE price is primarily determined by the demand for cars and the limited supply of COEs available, which are issued to control vehicle numbers in Singapore. A rise in the cost of public transport would typically lead to an increase in demand for private vehicles as an alternative, potentially pushing COE prices higher, not explaining a fall in prices. However, the table shows prices consistently rising, not falling, indicating that factors like a fall in the supply of COE or possibly an increase in consumer demand for cars, not public transport costs, are more likely impacting COE prices.Rate this question:
-
- 4.
The current account surplus(CA=Y-X>0) is equal to the sum of (Y=income, X=net import, T= tax, G= government expenditure, S=savings, I=investment) :
- A.
The government deficit (T-G<0) and the private surplus (S-I>0).
- B.
The government surplus (T-G>0) and the private surplus (S-I>0).
- C.
The government deficit (T-G<0) and the private deficit (S-I<0).
- D.
The government surplus (T-G>0) and the private deficit (S-I<0).
Correct Answer
B. The government surplus (T-G>0) and the private surplus (S-I>0).Explanation
A current account surplus (CA = Y - X > 0, where Y is income and X is net imports) indicates that a country is exporting more than it is importing, leading to a net inflow of funds from abroad. This surplus corresponds to the situation where both the government and the private sector are saving more than they are spending or investing. Specifically, a government surplus (T-G > 0) occurs when the taxes collected exceed government expenditures, showing government savings. Simultaneously, a private surplus (S-I > 0) occurs when private savings surpass private investments, indicating that the private sector is also saving more than it is investing. These combined surpluses mean that the nation as a whole is accumulating savings, contributing to the current account surplus, which reflects the country's net lending to the rest of the world.Rate this question:
-
- 5.
Other things being equal, the slope of the aggregate expenditures curve will increase as a result of:
- A.
A decline in the size of the inflationary gap.
- B.
A decline in the general price level.
- C.
An increase in the MPC.
- D.
An increase in the MPS.
Correct Answer
C. An increase in the MPC.Explanation
The slope of the aggregate expenditures curve in an economy is directly influenced by the marginal propensity to consume (MPC). The MPC measures the proportion of additional income that is spent on consumption rather than being saved. Thus, an increase in the MPC implies that consumers are likely to spend a higher fraction of any increase in their income, which leads to a steeper slope of the aggregate expenditures curve. This is because the curve, which represents the total spending in the economy at various levels of national income, will rise more rapidly with increases in income if consumers are spending more intensively. In contrast, the marginal propensity to save (MPS) has the opposite effect; an increase in the MPS would flatten the slope since more income is saved rather than spent. The other options listed do not directly affect the slope of the aggregate expenditures curve in this manner.Rate this question:
-
- 6.
Which of the followings is not one of the top 3 largest stock exchange markets in the world (by 2009)?
- A.
New York Stock Exchanges
- B.
NASDAQ
- C.
The London Stock Exchange
- D.
Toronto Stock Exchange
Correct Answer
D. Toronto Stock ExchangeExplanation
As of 2009, the top three largest stock exchanges in the world by market capitalization were the New York Stock Exchange (NYSE), NASDAQ, and the Tokyo Stock Exchange. The Toronto Stock Exchange, while significant, did not rank among the top three largest stock exchanges during that time. The London Stock Exchange is another major global financial marketplace but was not consistently in the top three when considering market capitalization in comparison to the NYSE, NASDAQ, and Tokyo Stock Exchange around 2009.Rate this question:
-
- 7.
Which of the followings is not a protection against credit card fraud?
- A.
Never do online shopping by using credit card
- B.
Signing on the credit card
- C.
Check the bills regularly
- D.
Reporting to the issuer if the card lost or stolen
Correct Answer
A. Never do online shopping by using credit cardExplanation
The suggestion to "Never do online shopping by using a credit card" is not considered a practical protection against credit card fraud. This advice recommends avoiding the use of credit cards online altogether, which undermines one of the primary conveniences of having a credit card and is not feasible for many consumers who rely on online shopping. More effective and realistic protections include signing on the credit card, which can help verify the cardholder's identity; regularly checking credit card bills to promptly spot and address any unauthorized transactions; and immediately reporting to the card issuer if the card is lost or stolen, thus preventing potential fraudulent use. These measures offer significant protection while allowing consumers to enjoy the benefits of credit cards.Rate this question:
-
- 8.
Which of following is true about CPF?
- A.
It provides housing grant for Singaporean and Singapore PR.
- B.
The ordinary and special accounts can be used for investment.
- C.
It has two accounts: ordinary and special.
- D.
It can be used to repay the outstanding education loans.
Correct Answer
B. The ordinary and special accounts can be used for investment.Explanation
The Central Provident Fund (CPF) in Singapore is a comprehensive social security savings plan that provides working Singaporeans and Permanent Residents with security in retirement, healthcare, home ownership, and more. It is accurate that CPF consists of more than just two accounts; it includes the Ordinary Account, Special Account, and Medisave Account. Therefore, the statement that "It has two accounts: ordinary and special" is false. CPF does indeed allow for the use of funds in both the Ordinary and Special accounts for various investments under specific conditions, making the statement about investment usage correct. While CPF funds can indeed be used for education and housing, the provided options about a housing grant and repaying education loans are not accurately phrased. CPF provides loans and grants for housing but doesn’t specifically mention grants for both Singaporeans and PRs under a general context, and while it supports education costs, the specific mention of repaying outstanding education loans requires more precise context.Rate this question:
-
- 9.
An agent is trying to gather information about his prospect, Mr Ong. Which of the following information should the agent determine? (i) Whether Mr Ong needs life insurance (ii) Whether he has any health conditions that could make him uninsurable (iii) Whether Mr Ong can afford to buy life insurance
- A.
(i) and (ii) only
- B.
(i) and (iii) only
- C.
(ii) and (iii) only
- D.
(i), (ii) and (iii)
Correct Answer
D. (i), (ii) and (iii)Explanation
An insurance agent evaluating Mr. Ong's suitability for life insurance should comprehensively assess several crucial aspects to ensure any recommendation is appropriate and feasible. First, the agent needs to determine if there is a genuine need for life insurance, which involves understanding Mr. Ong's financial and family circumstances to evaluate the potential financial risks to his dependents. Secondly, the agent should investigate any health conditions Mr. Ong might have that could impact his insurability, as this affects both the availability and cost of the insurance policy. Finally, it's important to establish whether Mr. Ong is financially capable of affording life insurance premiums without undue strain, ensuring the policy is sustainable over time. Collectively, these evaluations are essential for tailoring insurance advice that genuinely fits Mr. Ong's needs and means.Rate this question:
-
- 10.
Which of the following should you not consider before investing?
- A.
My investment objective
- B.
My desired rate of return
- C.
Historical performance of investment I am considering
- D.
My risk appetite
Correct Answer
B. My desired rate of returnExplanation
While all the listed factors are generally important in the context of investing, the option "My desired rate of return" is something that should be approached with caution and not considered in isolation before investing. The desired rate of return might lead an investor to have unrealistic expectations that are not aligned with market realities or their risk tolerance. Investment objectives, the historical performance of the investment, and one's risk appetite are crucial and more grounded factors that should definitely influence investment decisions. These elements help shape a realistic and strategic approach to investing based on personal financial goals, past market trends, and the level of risk one is comfortable handling, thereby guiding more balanced and informed investment choices.Rate this question:
-
Quiz Review Timeline +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
May 07, 2024Quiz Edited by
ProProfs Editorial Team -
Jun 07, 2010Quiz Created by
Nefmq2010
- Account Management Quizzes
- Classification Quizzes
- Conflict Management Quizzes
- Coordination Quizzes
- Data Management Quizzes
- Document Management System Quizzes
- ERP Quizzes
- Event Management Quizzes
- Integrated Solid Waste Management Quizzes
- Labor Management Quizzes
- Maintenance Management Quizzes
- Marketing Management Quizzes
- MIS Quizzes
- Operation Management Quizzes
- Planning Quizzes
- Principles Of Management Quizzes
- Principles Of Supervision Quizzes
- Process Management Quizzes
- Procurement Quizzes
- Product Management Quizzes
- Property Management Quizzes
- QMS Quizzes
- Quality Management Quizzes
- Resource Management Quizzes
- Responsibility Quizzes
- Scope Management Quizzes
- Security Management Quizzes
- Strategic Management Quizzes
- Supervisory Management Quizzes
Back to top