Question 1

Point A is on the same indifference curve as Point B. What can be said about the points?

Options :

A : Point B represents a bundle that costs more than Point A.

B : The consumer’s preference for bundle A is the same as for bundle B.

C : The consumer prefers bundle A over bundle B.

D : Point A represents a bundle that costs more than Point B.

Answer: B

Question 2

What is one of the three primary types of foreign exchange transactions?

Options :

A : Hedges

B : Forward transactions

C : Balanced transactions

D : Straddles

Answer: B

Question 3

What are properties of a typical indifference curve? (Choose TWO.)

Options :

A : Higher indifference curves are preferred to lower ones.

B : Indifference curves can intersect.

C : Indifference curves do not cross.

D : Indifference curves slope upward.

Answer: A,C

Question 4

Which system has elements of a market economy and a command economy?

Options :

A : Fair economy

B : Market-command economy

C : Mixed economy

D : Compromise economy

Answer: C

Question 5

What is a characteristic of common law as compared to civil law?

Options :

A : Common law relies primarily on comprehensive statutes and codes.

B : Common law is more reliant on precedents from previous judicial decisions.

C : Common law is based on religious teachings.

D : Common law minimizes the role of judges.

Answer: B