FREE BEC Subtest II Questions and Answers
What does the Consumer Price Index measure?
The Consumer Price Index measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. It is an indicator of inflation and the cost of living.
_____ is a field in a database table (or a combination of fields) that has a unique value.
A primary key is a field (or a combination of fields) in a database table that uniquely identifies each row in that table. It must contain unique values and cannot contain null values.
Which of the following is a lagging economic indicator?
The balance of trade, which is the difference between a country's exports and imports, can be considered a coincident or leading indicator, depending on the context and timing.
A database of auto parts has two tables. The first table includes all the different parts. The second table includes all the different types of vehicles.
Some parts can be used in more than one vehicle, while all vehicles consist of more than one part. This describes which type of table association?
In a many-to-many relationship, multiple records in one table can be associated with multiple records in another table. Here, multiple parts can be used in multiple vehicles, and each vehicle can have multiple parts.
What is a database?
A database is a systematic collection of data that allows for efficient storage, retrieval, and management of data.
An increase in inflation will lead to a(n) _____ in bond/debt prices.
As inflation rises, the fixed interest payments of existing bonds lose value in real terms, making these bonds less appealing to investors. Consequently, the prices of these bonds fall to offer a higher yield to attract buyers.
Why does a higher interest rate affect the business cycle?
Higher interest rates increase the cost of borrowing, which discourages individuals and businesses from taking out loans for consumption and investment. This can lead to reduced spending and investment, slowing down economic activity and affecting the business cycle.