Economics Exam! Trivia Questions!
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Questions and Answers
- 1.
Where was the 2011 G-20 Summit held?
- A.
Seoul
- B.
Toronto
- C.
Pittsburgh
- D.
Cannes
Correct Answer
D. CannesExplanation
The 2011 G-20 Summit was held in Cannes.Rate this question:
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- 2.
Which of the following people did not win a 2010 Nobel Prize in Economics?
- A.
Dale T. Mortensen
- B.
Christopher A. Pissarides
- C.
Thomas J. Sargent
- D.
Peter A. Diamond
Correct Answer
C. Thomas J. SargentExplanation
Thomas J. Sargent did not win a 2010 Nobel Prize in Economics. This can be inferred from the question which asks for the person who did not win the prize. The other three options, Dale T. Mortensen, Christopher A. Pissarides, and Peter A. Diamond, are not mentioned as the correct answer, so it can be concluded that they won the 2010 Nobel Prize in Economics.Rate this question:
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- 3.
What is the usual denomination of corporate-issued bonds?
- A.
100000
- B.
100
- C.
1000
- D.
10000
Correct Answer
C. 1000Explanation
Corporate-issued bonds typically have a usual denomination of 1000. This means that the face value of each individual bond is 1000 units of currency, such as dollars or euros. This denomination allows for easier trading and standardization in the bond market. It also provides flexibility for investors to purchase bonds in increments of 1000, making it more accessible to a wider range of investors.Rate this question:
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- 4.
What economic term is defined as a country's nominal GDP divided by its money supply?
- A.
Aggregate Demand
- B.
Total Demand For Money
- C.
Asset Demand For Money
- D.
Velocity Of Money
Correct Answer
D. Velocity Of MoneyExplanation
Velocity of money is a term in economics that refers to the rate at which money is exchanged or spent in an economy. It is calculated by dividing a country's nominal GDP (the total value of goods and services produced in an economy) by its money supply (the total amount of money in circulation). This measure helps to understand how quickly money is changing hands and being used for transactions in the economy. A higher velocity of money indicates a more active and vibrant economy, while a lower velocity suggests slower economic activity.Rate this question:
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- 5.
The U.S. government's fiscal year begins on what date?
- A.
October 1st
- B.
January 1st
- C.
August 1st
- D.
April 1st
Correct Answer
A. October 1stExplanation
The U.S. government's fiscal year begins on October 1st. This is because the fiscal year for the U.S. government starts on the first day of October and ends on the last day of September. This allows the government to align its budgeting and financial planning with the calendar year, as well as to ensure a smooth transition between fiscal years.Rate this question:
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- 6.
If a stock's indicated dividend rate is $10 and its closing value is $500, what is the stock's dividend yield?
- A.
20%
- B.
5%
- C.
500%
- D.
2%
Correct Answer
D. 2%Explanation
The stock's dividend yield is calculated by dividing the indicated dividend rate by the closing value of the stock and then multiplying by 100 to express it as a percentage. In this case, the indicated dividend rate is $10 and the closing value is $500. So, the dividend yield would be (10/500) * 100 = 2%.Rate this question:
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- 7.
What two-word term is used for a large trade of shares between two institutions?
- A.
Group Trade
- B.
Clump Trade
- C.
Block Trade
- D.
Mass Trade
Correct Answer
C. Block TradeExplanation
A "block trade" is a term used to describe a large trade of shares between two institutions. It refers to the purchase or sale of a large quantity of shares, typically in increments of 10,000 or more, between institutional investors. This type of trade usually involves negotiated prices outside of the regular market, and it can have a significant impact on the share price.Rate this question:
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- 8.
What illegal act involves an agreement between participants on the same side in a market to buy or sell a product only at a certain amount?
- A.
Profiteering
- B.
Product Bundling
- C.
Price Fixing
- D.
Racketeering
Correct Answer
C. Price FixingExplanation
Price fixing is an illegal act that involves an agreement between participants on the same side in a market to buy or sell a product only at a certain amount. This practice eliminates competition and allows the participants to artificially control prices, leading to higher prices for consumers and reduced market efficiency. Price fixing is considered anti-competitive behavior and is prohibited by laws in many countries.Rate this question:
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- 9.
How often do U.S. Treasury Notes pay interest?
- A.
Every 12 Months
- B.
Every 6 Months
- C.
Every 3 Months
- D.
Every 24 Months
Correct Answer
B. Every 6 MonthsExplanation
U.S. Treasury Notes pay interest every 6 months. This means that investors who hold these notes will receive interest payments twice a year. This regular payment schedule allows investors to earn a steady stream of income from their investment in Treasury Notes.Rate this question:
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- 10.
Companies with "Red Chip" stocks are based in what country?
- A.
Russia
- B.
Canada
- C.
Japan
- D.
China
Correct Answer
D. ChinaExplanation
"Red Chip" stocks are a term used to refer to Chinese companies that are incorporated outside of mainland China but are listed on the Hong Kong Stock Exchange. These companies are usually controlled by the Chinese government or state-owned enterprises. Therefore, the correct answer is China.Rate this question:
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- 11.
Which monetary policy involves lowering interest rates during a recession?
- A.
Contractionary
- B.
Reactionary
- C.
Fiduciary
- D.
Expansionary
Correct Answer
D. ExpansionaryExplanation
During a recession, the government or central bank may implement an expansionary monetary policy by lowering interest rates. This is done to stimulate economic growth and encourage borrowing and spending. By reducing interest rates, it becomes cheaper for businesses and individuals to borrow money, leading to increased investment and consumption. This expansionary policy aims to boost aggregate demand and stimulate economic activity, helping to alleviate the effects of a recession.Rate this question:
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- 12.
How many companies were used to compute the first Dow Jones Industrial Average in 1896?
- A.
20
- B.
26
- C.
30
- D.
12
Correct Answer
D. 12Explanation
The first Dow Jones Industrial Average was computed in 1896 using 12 companies.Rate this question:
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- 13.
What accounting term is used to rectify the cost of intangible assets with a decrease in their value over their useful life?
- A.
Negative Sloping
- B.
Amortization
- C.
Sloping
- D.
Negative Amortization
Correct Answer
B. AmortizationExplanation
Amortization is the correct answer because it is the accounting term used to rectify the cost of intangible assets with a decrease in their value over their useful life. Amortization is a systematic allocation of the cost of an intangible asset over its useful life, similar to how depreciation is used for tangible assets. It helps to accurately reflect the decrease in value of intangible assets over time and ensures that their costs are properly accounted for in financial statements.Rate this question:
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- 14.
Which of the following is a direct tax?
- A.
Sales Tax
- B.
A Tax Per Unit
- C.
Transfer Tax
- D.
Goods And Service Tax
Correct Answer
C. Transfer TaxExplanation
Transfer tax is a direct tax because it is imposed directly on the transfer of property or assets from one person to another. This tax is typically levied on real estate transactions, gifts, or inheritances. Unlike indirect taxes such as sales tax or goods and service tax, which are passed on to the consumer, transfer tax is paid by the person transferring the property. Therefore, transfer tax meets the criteria of a direct tax as it is levied directly on the individual or entity involved in the transfer of assets.Rate this question:
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- 15.
Which Amendment to the U.S. Constitution allows the federal government to collect income tax?
- A.
15th
- B.
16th
- C.
17th
- D.
14th
Correct Answer
B. 16thExplanation
The 16th Amendment to the U.S. Constitution allows the federal government to collect income tax. This amendment was ratified in 1913 and gave Congress the power to levy and collect taxes on income from any source without apportionment among the states. Prior to this amendment, the federal government relied on tariffs and excise taxes for revenue. The 16th Amendment significantly expanded the government's ability to generate funds and has been a key source of revenue for the federal government ever since.Rate this question:
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