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BJU Economics CH 8 Flashcards | StudBud
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BJU Economics CH 8
BJU Economics CH 8
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BJU economics Bob Jones University
Flashcards
50 cards
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Practice quiz
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Questions
50
Answers
1
Legally, partnerships always require a written contract
False
True
2
What is a capital good?
A good that is only for the capital
A good for consumers
A good made in the capital of a state
Goods that are used to produce other goods
3
The NASDAQ is famous for having no floor
True
False
4
Dividends are
All of the company's earnings
Not part of an investor's return
A share of the company's earnings paid to stockholders
Required payments to stockholders
5
Mutual funds are privately managed portfolios.
True
False
6
What term do economists use to describe the act of buying?
value
price
demand
cost
7
amount of a product a company is willing to provide at various prices
law of supply
change in quantity supplied
change in supply
supply
8
How is the wealth defined in mercantilism?
Good and precious metals
All the goods and services produced
The individual financial prosperity of it's citizens
The whole value of it's money and gold
9
This type of business ownership is the MOST POPULAR type in the USA.
Sole proprietorship
Partnership
Corporation
10
Which of the following is closest to the concept of gambling?
Investing
Speculating
All of these
Saving
11
The stockexchange famous for having no "floor" is
AMEX
NYSE
NASDAQ
the London Stock Exchange.
12
The first American stock exchange was in Philadelphia.
False
True
13
Which of the following caused the stock market to crash?
All of the above
Wild Speculation
People buying stock on credit
Slow economy
14
Purpose of stock index
predict recessions
identify trends
track stock prices
identify most profitable businesses
15
What do stockholders vote for?
The president of the USA
Hiring a new manager
Expanding the company
Board of Directors
16
A share of a corporations profits paid to the stockholders...
Coupon
Dividend
Cash
Rebate
17
Over half of all business fail within the first five years
True
False
18
What is the chief advantage of the line graph over the schedule
Because Carl Menger said it was better
Lines are easier to draw
They provide more information
They are simpler
19
Which of these is a capital good?
an automobile
a novel
a cell phone
steel press
20
Which is a consumer good?
combine
tractor
printing press
bicycle
21
When a company sells stock for the first time it is known as
stock sale
capital campaign
securities sale
initial public offering
22
Gambling and Investing are the same because they both depend on random chance
False
True
23
Conservation of natural resources primarily shows a grasp of which economic concept?
scarcity
utility
public good
microeconomics
24
How did Adam Smith define wealth?
liquid assets
real estate
items that provide utility
all the money
25
A company's first offering of a stock to the public is...
DJIA
IPO
Investment bank
Midnight release
26
The three basic types of business ownership are
sole proprietorship, partnership, and franchise
limited liability corporation, partnership, coopertive
partnership, cooperative, and corporation
sole proprietorship, partnership, and corporation
27
What is the purpose of the SEC (Securities and Exchange Commission)?
To make sure there are no monopolies
To insure all bank accounts to $5,000
To have today's workers pay for today's retirees
Watch stock market so there's no fraud/ insider trading
28
a Company's IPO is less than 50%
True
False
29
What is the most prevalent type of stock that most corporations offer?
Divided Stocks
Birkenstocks
Common Stocks
Preferred Stocks
30
What journel did Charles Dow and Edward Jones found
The New York Times
CNN
BuzzFeed
The Wallstreet journal
31
Which pair are an example of complimentary goods?
diamonds and pearls
peanut butter and jelly
peanut butter and ham
steak and plates
32
Preferred stockholders are paid before the common stockholders.
True
False
33
Where was the first stock exchange in the United States?
Chicago
Philadelphia
Birmingham
New York
34
What is the chief advantage of incorporating a company?
limited personal liability
secrecy of business information
ease of formation
freedom from excessive taxes
35
Which is an example of CAPITAL GOODS?
ALL
computers
tools
factory equipment
36
The most commonly looked at stock index is...
S&P 500
YOLO
Dow Jones Industrial Average
NASDAQ
37
Why do law firms most likely use the partnership type of business
partnerships provide greater financial resources
partnerships provide the public the ability to by stock
partnerships provide greater retention of employees
partnerships provide less personal liablity
38
This type of business give the owner the most freedom
Sole Proprietorship
Corporation
Limited Partnership
Partnership
39
What is a significant similarity between capitalism and communism
both favor a free market
both have high taxes for the rich
both look to distribute goods equally
both ultimately see no need for government
40
What is the primary economic concern of a society
balancing the budget
achieving it's economic goals
providing goods and services
taking care of the poor
41
The term for a company that is offering stock purchase for the first time to the public is:
NYSE
DIV
IPO
Vol 100
42
Stockholders' influence on how business is run
they have no say
they have a say
43
What does IPO stand for
Investing personal options
Initial public offering
Inside payment office
Initial price offer
44
Which event contributed most to the establishment of the U.S. Securities & Exchange Commission?
The 1929 Crash Of The Stock Market
The Formation Of The Standard Oil Trust
The Panic of 1893
The Teapot Dome Scandal
45
What is currently the most reputable stockexchange in the world
LondonStock Exchange
NYSE
NASDAQ
AMEX
46
According to the text, economics is...
systems man creates to produce, buy & sell goods & services
people, businesses, and governments making financial choices
theories guide nations' financial & monetary laws & systems
the science of how and why individuals make choices
47
Whichstock index is considered the best gauge of the health of American industry?
The S & P
The Dow Jones Industrial Average
NYSE
NASDAQ
48
Why is the stock market necessary?
It regulates the economy
Allows public ownership of mass companies
It is the main way companies raise capital to expand
All of the above
49
What is the difference between a common stock and a preferred stock?
The name
Common stocks give you a chance to vote
Preferred stocks give you a chance to vote
There is no difference
50
Preferred stockholders are paid before the common stockholders.
True
False
