Mini-quiz 3

11 Questions | Total Attempts: 37

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Mini-quiz 3

National Economics and Finance Management Quiz 2009 - Mini-quiz 3


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Questions and Answers
  • 1. 
    When Sally had only one gallon of water in the cupboard, she said she was willing to give up a week's worth of television to get another gallon. Now that she has ten gallons of water in the cupboard, she refuses to part with anything when offered another gallon of water. Sally's behavior demonstrates
    • A. 

      That drinking water and watching television are, for some reason, perfect substitutes for her

    • B. 

      Intersecting indifference curves

    • C. 

      Irrationality

    • D. 

      A diminishing marginal rate of substitution

  • 2. 
    Consider the case where a change in the price of steel affects the price of automobiles and quantity of automobiles sold on the market. What are the exogenous and endogenous variables, with respect to the automobile market?
    • A. 

      Exogenous: price of automobile, Endogenous: price of steel

    • B. 

      Exogenous: price of steel, Endogenous: price of automobile

    • C. 

      Exogenous: quantity of steel, Endogenous: quantity of automobile

    • D. 

      Cannot be determined

  • 3. 
    Which of the following is part of the opportunity cost of going on holiday?
    • A. 

      The money you spent on a theatre show

    • B. 

      The money you could have made if you had stayed in Singapore and worked

    • C. 

      The money you spent on airline tickets

    • D. 

      The money you spent on food

  • 4. 
    Which one of the following is the closest to being a ‘pure’ public good?
    • A. 

      Defence

    • B. 

      Health services

    • C. 

      Education

    • D. 

      Electricity supply

  • 5. 
    Which of the following people is/are regarded as being unemployed?                       i.            During the recession, Matthew was retrenched from the consultancy firm he worked for. Matthew pores over the newspapers daily for job vacancies. Alas, all the jobs listed do not fulfill his expectations. Discouraged, Matthew gives up.                     ii.            Adeline recently graduated with a diploma in bioengineering but has been unsuccessful in finding a job in the life sciences industry. She has spent the last month making plans on starting a business with her friends.                   iii.            Matilda is a recent sociology graduate. She sent her resume to three publishing firms but has not heard from any of them yet. Meanwhile, Matilda takes care of her niece who has come to live with her for two months.                    iv.            Thaddeus graduated with a degree in economics from a prestigious university one year ago. He is dissatisfied with his present position as a human resource manager as he feels he is not applying what he learned in university. He is actively seeking out job opportunities in the banking industry.     
    • A. 

      (i) only

    • B. 

      (ii) and (iii)

    • C. 

      (i), (ii) and (iii)

    • D. 

      (ii), (iii) and (iv)

  • 6. 
    What are the ways Singaporeans finance their healthcare needs?         i.   Medisave          ii.  MediShield         iii. Private health insurance         iv.  Term Insurance         v.   ElderShield
    • A. 

      All of the above except i and ii

    • B. 

      All of the above except ii and iii

    • C. 

      All of the above except iv

    • D. 

      All of the above except v

  • 7. 
    Serene needs $100,000 in 8 years. She intends to invest $50,000 now to accumulate the $100,000. What should the required rate of return be for Serene to accumulate $100,000 in 8 years’ time?  
    • A. 

      8% p.a.

    • B. 

      9% p.a.

    • C. 

      10% p.a.

    • D. 

      11% p.a.

  • 8. 
    A high yield bond is a bond that pays ______ interest with ______ risk.
    • A. 

      High…high

    • B. 

      High…low

    • C. 

      Low…high

    • D. 

      Low…low

  • 9. 
    What are the similarities between the CPF Investment Scheme (CPFIS) and the Supplementary Retirement Scheme (SRS)?         i.            Both are voluntary schemes       ii.            Both have eligibility criteria     iii.            Both allow investments in single and regular premium products  
    • A. 

      I, ii

    • B. 

      I, iii

    • C. 

      Ii, iii

    • D. 

      All of the above

  • 10. 
    Interest payment is not the only cost of borrowing money. The financial institution may apply other charges, such as ___________________________.
    • A. 

      Valuation fee

    • B. 

      Stamp duty

    • C. 

      Processing fee

    • D. 

      Insurance premium

  • 11. 
    A person discovers that he has contracted cancer. He then quickly applies for critical illness policy. Can he make a claim on this critical illness policy?
    • A. 

      Yes, he contracted cancer

    • B. 

      Yes, if he pays his premiums promptly

    • C. 

      No, he contracted cancer before taking up the policy

    • D. 

      No, critical illness policy does not cover cancer