79 câu hỏi tiếng anh chuyên ngành

A free market economy is an economic system in which the market is regulated by the law of supply and demand.. A mixed economy is an economic system in which some goods and services are

79 câu hỏi Tiếng Anh chuyên

ngành

Unit 1 -> unit 15

Lê An | CQ54/01.02 | Academy of Finance

6/2/2019

1.What is Economics ?

Economics is the study of how people choose to use resources to improve their well-beings.

OR

Economics is the study of production and consumption of goods or services , the transfer of wealth to produce and obtain goods or services

2.What is well-being ?

Well-being is the satisfaction from using goods or services

OR

Well-being is the satisfaction people gain from the goods or services they choose to consume, from the time they spent in leisure and family and community as well as in jobs, and the security and services provided by effective governments

3 What are important choices in Economics ?

Important choices involve how much time to devote to work , to school, and to leisure; how many dollars to spend and how many to save , how to combine resources to produce goods and services; and how to vote and shape the level of taxes and the role of government.

4 What are resources ?

They are anything that people use/combine to produce/make/create goods or services , with their knowledge and experience

For example : labor, natural resources, capital, machines/equipments, technology

5 What are two types of Economics ?

They are Microeconomics and Macroeconomics

6 Why do people study Economics ? Or How can we benefit from studying

Economics ?

Studying economics can help us understand human thought and behavior And also people and countries could become wealthy through studying Economics

7 What are factors of production ?

Anything that people use for producing goods and services For example : tools, equipments, machines,

8 What are some examples of economic relations ?

Buyers – sellers

Lenders – borrowers

Employers – employees

9 What are market forces ?

They are demand and supply

10 What are one conflict of economics ?

Resources are limited but people’s wants / needs are unlimited.

11 What is difference from theory of Adam Smith and Marxism ?

In theory of Adam Smith , market can regulate itself by the law of demand and supply so the

government shouldn’t interfere

While Marxism states believe that capitalism will eventually fail because of social unrest and class

conflict and laborers should own and control means of production

12 What does theory of Keynesian school indicate ?

The role of government in capitalistic economy is significant and government regulates economy through economic policies

13 What is a free market economy ? planned economy ? mixed economy ? What are differences between free market economy and planned economy?

A free market economy is an economic system in which the market is regulated by the law of supply and demand Companies compete freely and government influences the economy through its fiscal and budgetary policies.

A planned economy is an economic system in which government controls the economy directly and

make all decisions about economy : how much to produce , how to distribute,

A mixed economy is an economic system in which some goods and services are produced by the

government and some by private enterprise

- In free market economy, the role of government is not remarkable

In planned economy, the government controls the economy directly and make all decisions about

economy

14 How do company compete in free market economy ?

Companies compete freely

15 What does trade-off mean ?

Trade-off is an exchange that occurs as a compromise

16 What are some limits in Microeconomics ?

Consumer have limited income

Workers have limited time, skills, health, education and experience

Firms have limited capital , production capacity

17 What does theory of consumer indicate ?

Consumer theory describes how consumers, based on their preferences, maximize their well-being by

trading off the purchase of more of some goods with the purchase of less of others.

18 Give some examples of trade-off among consumers ?

Consumer have limited income, so they have to trade off buying more of some goods with buying less of

others / trade off spending now with saving

19 Give some examples of trade-off among workers ?

Workers have limited time, skills, health, education and experience,

so they have to trade off working now with studying / work with leisure / working in good enviroment with less opportunity of advancement with working in worse enviroment with more opporturnity of advancement

20 What does theory of firms indicate ?

It describes how trade-offs can be best made

21 Give some examples of trade-off among firms ?

Firms have limited technology, they choose the kind of products to produce

Firms have limited capital , production capacity , they choose the number of goods to produce / they choose to hire workers or to build more factories

22 What are three important themes of microeconomics?

They are how to make optimal trade-offs, the role of prices and the role of market.

23 What is the goal of macroeconomics ?

The goal of macroeconomics is to look at overall economic trends of a country such as : Economic

growth, Employment level, inflation , balance of payments, GDP, GNP, and so on

24 What are two main policies of Macroeconomics, their tools and their purposes ? They are Fiscal policy and Monetary policy

Their tools: the government’s spending and revenue , money supply

The purpose of these 2 main macroeconomic policies : High economics growth, Keeping inflation under control.

25 What are differences between microeconomics and macroeconomics ?

- The study of economic activities of individuals

and firms

- Look at overall economic trends: employment

levels, economic growth, inflation,

- Top-down approach

The study of economic activities of a country or international market

- Study how to allocate of limited resources

- Bottom-up approach

26 Why is it said that microeconomics and macroeconomics are interdependent and complement one another ?

Because there are many overlapping issues between the two fields

27 What is GDP ? Inflation ?

GDP ( or Gross Domestic Products ) is the total value of goods and services produces in a country in a

year

Inflation is the rate at which the general level of prices for goods and services is rising

28 What is demand ? Quantity demanded ? What is the difference between

“demand” and “quantity demanded” ?

Definition • Quantity demanded is the

quantity of goods and services buyers are able and willing to buy at a certain price

• Demand is the quantity of goods and services buyers are able and willing to buy at various prices

Change in demand curve the movement along the

demand curve

the entire demand curve to shift to the left/right

29 What is supply ? Quantity supplied ? What is the difference between “supply” and “quantity supplied” ?

Definition • Quantity supplied is the

quantity of goods and services sellers are able and willing to sell at a certain price

• Supply is the quantity of goods and services sellers are able and willing to sell at various prices

Change in supply curve the movement along the

supply curve

the entire supply curve to shift

to the left/right

30 What are some shift factors of demand , supply ?

Shift factors of demand : people’s income, population, tax, inflation, seasonality, quality,…

Shift factors of supply : price of input, tax, inflation, technology, import quotas,

31 How does price of good affect demand, supply ?

A change in the price of a good causes a change in quantity demanded Other factors are constant

If the price of a good increases, quantity demanded will decrease

decreases, increase

A change in the price of a good causes a change in quantity supplied Other factors are constant

If the price of a good increases, quantity supplied will increase

decreases, decrease

32 When is a market in equillibrium ? What is excess demand ? What is excess supply ?

A market is in equillibrium when there is no tendency for the price to change Quantity demanded is equal to quantity supplied

Excess demand / Excess supply occurs when quantity demanded is more than quantity supplied / when quantity supplied is more than quantity demanded

33 What is public finance concerned with ?

Public finance is concerned with how the government raises and spends money.

34 What is Federal fund ? Trust fund ?

Trust fund is from Payroll tax It is used for specific programs such as security and social medicare

Programs are the same from year to year.

Federal fund is from individual income tax and corporate tax It is used for general programs Programs can be different from year to year basing on annual appropriation process.

35 By what way does the government borrow money ?

Government can borrow money by issuing and selling bonds and pays prefixed interest rate

36 Who does the government owe money to ?

The public , which includes individuals and organizations in the country and from foreign countries

37 What are main sources of government’s revenue ?

From Taxtation

38 What is deficit ?

When the government spends more than it receives, it runs Deficit

39 What is deficit spending? Is it harmful or helpful? Why ?

- Deficit spending: Spending money from borrowing or printing instead of taxation.

- It’s helpful when unemployment rate is high, economy grows slowly because government borrows money to undertake projects, it can create jobs for idle workers

- It’s harmful when unemployment rate is low, economy overheats because it can increase inflation when the government increase money supply

40 How does the government do to finance deficit ?

Deficit which can be financed by issuing government bonds ( borrowing ) or printing more money

41 Under what circumstances can fiscal policy be expansionary? Contractionary ? Why ?

> Government should use expansionary fiscal policy when slow economic growth and high

unemployment

Because government can restrict spending throughout reducing taxation and increasing public spending

> Government should use contractionary fiscal policy when overheating economy and high inflation

Because government can increase money supply throughout increasing taxation and reducing public spending

42 What are some factors to be considered when making fiscal policy ?

Inside factors: Future employment level, economic growth, borrowing or printing money, political

consideration

Outside factors: Fiscal policy of other countries, requirement of IMF

43 Why should the government consider the fiscal policies of other countries ? Because the government want to give generous tax programs or the government want to control

benefits to attract foreign investments

44 What is progressive tax ? Regressive tax ?

Progressive is a tax charging at higher rates on higher incomes.

Regressive is a tax charging at lower rates on higher sales.

45 What is direct and indirect taxes ?

Direct tax is a tax levied on taxable person such as income tax

Indirect tax is a tax levied on goods and services such as payroll tax, excise tax and custom duties,…

46 What is payroll tax ? Corporate income tax ? Custom duties ? Excise duties ? Capital gain tax ? Capital transfer tax ?

Payroll tax is the tax imposed on employee’s salary, paid by both employers and employees

Corporate income tax is the tax imposed on profit of a company

Customs duties is the tax imposed on imports, exports

Excise duties is the tax imposed on specific goods to limit consumption

Capital gain tax is a tax levied on capital gains, which are profits from the sale of specific types of assets, including stocks, bonds

VAT ( value added tax ) is a tax collected at each stage of production

47 What is tax avoidance ? Tax evasion ?

Tax evasion: making false declarations to the tax authorities to reduce tax.

Tax avoidance: reducing the tax money to the legal minimum.

48 What are some ways to for an individual, a company to avoid tax ?

Avoiding tax on salaries: Using loopholes in tax law, tax shelter, tax deductible

Avoiding tax on company’s profits: make a tax loss, set up head office in tax heavens, launder money

49 What is tax shelter ? Tax deductible ? Tax heaven ? Laundering money ?

Tax shelter: postpone paying tax

Tax deductible: subtract money from taxable money

Tax heaven: a country has low tax rate

Laundering money: put taxable money into different companies to disguise the origin of money.

50 What do criminal organizations do to disguise the origin of money ?

Laundering money

51 What are some functions of taxation ?

Raise government revenue

Redistribute society income

Regulate the economy

Limit consumptions

Protect domestic goods

52 What is marginal rate ?

The marginal rate : the tax people pay on any additional income

53 What is insurance in financial definition ?

Insurance is the financial arrangement that redistributes the cost of unexpected losses

54 What is insurance premium ? Compensation ? Insurance policy ?

Insurance premium: the amount of money insurer collects from insured and promise to compensate in case of losses

Compensation: the amount of money insurer pays to insured in case of losses

Insurance policy: financial agreement between insured and insurer

55 What does the insured receive when a loss occurs ?

The insured receive compensation when unexpected losses occur.

56 Why are people willing to pay an insurance premium ?

If loss occurs , Insured gets compensation from insurance company

If not, insured has no anxiety about a loss

57 What is difference between insurance and gambling ?

Gambling is illegal and insurance is legal

58 How can an insurance system accomplish the redistribution of costs of

unexpected losses ?

Insurer collects premium from every participants but very few participants suffer from unexpected losses

59 What do you know about contract of insurance ?

Contracts of insurance is a special class of contract in that the law requires the insured and the insurer, to exercise the good faith towards each other

60 What is the concept of money ?

A commodity as a medium of economic exchange

Express prices and values of goods

Measure of wealth.

Circulates from person to person and country to country to facilitate trade

61 What are 4 functions of money ? What is the most important function in your opinion ?

Medium of exchange (The most important function of money)

Measure of value

Store of value

Standard of deferred payments

62 What is unit of account? Medium of exchange ?

Unit of account is the unit in which the price is quoted and account is kept

Medium of exchange is anything used for payments for goods and services and in settlement of debts

63 How is money functioned as a standard of medium of exchange ? measure of value ? deferred payments ? store of value ?

Medium of exchange: Money is used in payment for goods and services

Measure of value: Money is used to measure value in its unit of account

Standard of deferred payments: Money is used to pay after you buy something

Store of value: Money is used to make purchases in the future This function can suffer from inflation

64 What are 2 kinds of money and differences between them?

They are Commodity money and Token money

The value in use of commodity

money is about equal to the value of

material contained in it

Example: gold, copper

The value in use of token money is higher than its cost of production

Example: paper note

65 What are 3 major tools of monetary policy? What is the most popular tool ?

- Reserve Requirement

- Discount Rate

- Open Market Operation (OMO)

OMO is the major and most common tool because it is faster for central bank to change money supply on OMO than changing reserve requirement or discount rate

66 What is Reserve Requirement ? Discount Rate ? Open Marketing Operation ?