BPP Economics 3

Question 1

What is 'interest' in a financial context?

Accepted Answer

The fee paid for borrowing money or earned on savings

Answer

A type of government bond

Answer

A business registration fee

Answer

The profit made from selling stock

Question 2

What is a stock market?

Accepted Answer

A market where company shares are bought and sold

Answer

A place where groceries are sold in bulk

Answer

A government price-setting system

Answer

A bank that stores gold reserves

Question 3

What does 'scarcity' mean in economics?

Accepted Answer

Resources being limited relative to unlimited wants

Answer

A surplus of goods in the market

Answer

A government-controlled price system

Answer

High unemployment in a region

Question 4

Which economic system is characterized by private ownership and free markets?

Accepted Answer

Capitalism

Answer

Communism

Answer

Command economy

Answer

Feudalism

Question 5

What is entrepreneurship in economics?

Accepted Answer

Organizing resources to start and run a business while taking financial risk

Answer

The purchase of foreign currency

Answer

A tax incentive for large corporations

Answer

The process of government borrowing

Question 6

What is unemployment?

Accepted Answer

When people who are able and willing to work cannot find jobs

Answer

When workers retire voluntarily

Answer

When businesses reduce prices

Answer

When the government cuts spending