Tiêng an h chuyên ngành 1 câu hỏi

What is a free market economy?The market economy is an economic system in which the market is supposed to be regulated by the law of supply and demand.. Firstly, in a free market economy

UNIT 1

1 Adam Smith’s theory?

Adam Smith believed that people who acted in their own self-interest produced goods and wealth that benefited all of society He also believed that governments should not restrict or interfere in the markets because they could regulate themselves to produce wealth at maximum efficiency Therefore, classical theory forms the basis of capitalism

2 Marxism theory?

Marxism states that capitalism will eventually fail because factory owners and CEOs exploit laborers to generate wealth for themselves He believed that laborers' exploitation leads to social unrest and class conflict To ensure social and economic stability, he theorized that laborers should own and control the means of production

3 Theory of Keynesian School?

The Keynesian school describes how governments can act within capitalistic economies to promote economic stability They can reduce taxes and increase government spending in the stagnant economy, and reduce government spending and increase taxes in the overactive economy This theory strongly influences U.S economic policy

4 What is Economics?

Economics is the study of how people choose to use resources to improve well-being Resources include land, buildings, equipment, tools, knowledge, people’s time and talent Economics also studies the production and consumption of goods and services, and human interaction within markets Therefore, it can explain how people and Government behave in particular ways

UNIT 2

1 What is a free market economy?

The market economy is an economic system in which the market is supposed to be regulated by the law of supply and demand. Business firms compete freely. Direct government intervention is theoretically ruled out although the government influences the economic situation through its fiscal and budgetary policies

2 What is a planned economy?

A planned economy is an economic system whereby the structure of market is deliberately planned by the state. Production and consumption quotas are fixed beforehand. There is no real competition between industrial and commercial organizations. Means of production and channels of distribution are state-controlled

3 What is a mixed economy?

A mixed economy is an economic system in which some goods and services are produced by the government and some by private enterprises It lies between free market economy and planned economy

4 What are the differences between free market economy and planned economy?

There are some differences between the free market economy and the planned economy. Firstly, in a free market economy, the market is regulated by the law of supply and demand. On the other hand, in a planned economy, the structure of market is deliberately planned by the state. Secondly, in a free market economy, business firms compete freely while in a planned economy, there is no real competition. Lastly, there is no direct government intervention in a free market economy whereas there is in a planned economy

UNIT 4

1 What does macroeconomics study?

Macroeconomic is a branch of economics that studies the economic activity of an entire country and economy-wide phenomena. It looks at overall economic trends such as employment levels, economic growth, the balance of payments, inflation, and so on. Therefore, it provides people with a bird’s-eye view of the country’s economic landscape

2 What are differences between microeconomics and macroeconomics?

There’re some differences between macroeconomics and microeconomics. Firstly, microeconomics studies individual and business decisions while macroeconomics looks at higher-up country and government decisions. Secondly, microeconomics focuses on supply and demand and other forces that determine the price. On the other hand, macroeconomics centers on economy-wide phenomena such as GDP, national income, inflation, etc… Lastly, microeconomics takes a bottom-up approach while macroeconomics takes a top-down approach

3 What are 2 branches of economics? What do they study?

The two main branches of economics are microeconomics and macroeconomics. Microeconomics studies the actions of individuals and industries. Macroeconomics studies the economic activity of an entire country and economy-wide phenomena

UNIT 5

1 How do prices of a good influence its quantity demanded and quantity supplied?

If the price of good increases, the quantity demanded will decrease and the quantity supplied will increase. On the other hand, if the price of goods decreases, the quantity demanded will increase and the quantity supplied will decrease

2 What are shift-factors of demand? Analyzing one of shift-factors?

Shift-factors of demand are society’s income, prices of other goods, expectations, and tastes. For example, if society’s income is higher, people (buyers) are willing and able to buy more at various prices. Therefore, demand will increase and the demand curve will shift to the right. On the other hand, if society’s income is lower, people are willing and able to buy less at various prices. So demand will decrease and the demand curve will shift to the left

3 What are shift-factors of supply? Analyzing one of shift-factors?

Shift-factors of supply are prices of inputs, technology, taxes and suppliers’ expectations For example, if prices of inputs are higher, producers are willing and able to produce less at various prices Therefore, supply will decrease and the supply curve will shift to the left

On the other hand, if prices of inputs are lower, producers are willing and able to produce more at various prices So supply will increase and the supply curve will shift to the right

4 What is the difference between demand and quantity demanded?

Demand refers to all the possible quantities of goods and services that buyers are willing to buy at various prices while quantity demanded refers to the particular quantity of a good or service that buyers are willing and able to buy at a certain price In addition, demand is influenced by shift-factors whereas quantity demanded is influenced by the price

5 What is the difference between supply and quantity supplied?

Supply refers to all the possible quantities of goods and services that sellers are willing and able to sell at various prices while quantity supplied refers to the particular quantity of a good or service that sellers are willing and able to sell at a certain price In addition, supply is influenced by shift-factors whereas quantity supplied is influenced by the price

UNIT 6:

1 What are two types of funds from taxation?

Two types of funds from taxation are federal fund and trust fund Federal funds are general revenues which include income taxes and corporate taxes and they can be used to finance the government in general On the other hand, trust funds which include payroll taxes can be used only to pay for very specific programs such as Social Security and Medicare

2 What is the federal debt/ public debt?

The federal debt is the sum of the debt held by the public plus the debt held by federal account In detail, debt held by the public is total amount the gorvernment owes to all of its creditors in the general public Debt held by federal account is the amount of the money that Treasury has borrowed from itself

3 What are main sources of gorvenment revenue?

Main sources of gorvernment revenue are from taxation and borrowing Government revenue comes from many different kinds of taxes Among them, three main sources are individual income taxes, payroll taxes and corporate income taxes In addition, government revenue comes from borrowing Borrowing is mainly achieved through the issuing of bonds

UNIT 7

1 In what way (How) do government spending and taxation affect the economy? Give examples?

Government spending and taxation directly affect the overall performance of the economy For example, if the government increases spending to build new highway, the construction of the highway will create jobs Jobs create income that ppl spend on purchases, and the economy tends to grow On the other hand, when the government increases taxes, households and businesses have less of their income to spend, they purchase fewer goods and the economy tends to shrink

2 What is deficit spending? How is deficit spending helpful or harmful for the economy?

Deficit spending is spending funds obtained by borrowing or printing instead of taxation Deficit spending can be helpful for the economy when unemployment is high or the economy is slowing down On the other hand, it can be harmful for economy when unemployment is low

or the economy is overheating

● Helpful

Deficit spending is spending funds obtained by borrowing or printing instead of taxation Deficit spending can be helpful for the economy when unemployment is high For example, when unemployment is high, the government can undertake projects that use workers who would otherwise be idle The economy will then expand because more money is being pumped into it

● Harmful

Deficit spending is spending funds obtained by borrowing or printing instead of taxation Deficit spending can be harmful for the economy when unemployment is low For example, when the unemployment is low, a deficit spending may result in rising prices or inflation The

additional government spending creates more compention for scarce workers and resources and this inflates wages and prices

3 What is expansionary fiscal policy?

Fiscal policy is expansionary when taxation is reduces or public spending is increase Expansionary fiscal policy might occur when the economy is not growing fast enough or unemployment is too high Expansionary fiscal policy is used to create jobs, increase demand, and develop the economy

4 What is contractionary fiscal policy?

Fiscal policy is contractionary when taxation is increased or public spending is reduced Contractionary fiscal policy might occur when the economy is growing too fast or inflation is too high Contractionary fiscal policy is used to restrict demand, control inflation and slow down the economy

5 What factors should be considered in making decisions on the fiscal policy?

Factors considered in making decisions on the fiscal policy include inside factors and outside factors Inside factors consist of the level of economic growth or unemployment likely in the future, whether or not

to run a budget deficit, and political considerations Outside factors include fiscal policy of other contries and the requirements of the IMF

UNIT 8

1 What are funtions of taxation?

The primary function of taxation is to raise revenue to finance government experdicture Taxation also has other functions Indirect excise duties can be designed to dissuade ppl from consumming some kinds of products Taxation is also used by the government to encourage capital investment

2 What are ways (How) to avoid tax on salaries?

PPl avoid tax on salaries by some ways Some employers give high-paid empolyee lots of perks instead of taxable money to reduce income tax ability Individuals can postpone the payment of tax through life insurance policies, pension plans and other investment, which are known as tax shelters

3 What are ways (How) to avoid tax on profits?

Companies have variety ways of avoiding tax on profits They can bring forward capital expenditure so that at the end of year, all the profits have been used up, which is known as a tax loss Multinational companies often set up their offices in countries where taxes are low Somw criminal organizations tend to pass money through a series of companies in very complicated transactions to disguide its origin from tax inspectors and police

4 What are ways (How) to evade tax?

Ppl have some ways to avade tax Self-employed ppl whose income is more difficult to control than that of company undeclare their income Lots of ppl also undeclare their part-time job with small and medium-sized family firms

UNIT 10:

1 What does the insurance system operate? (= What is the operating principal of insurance?

An insurance system collects premium from participants in the system

It gives a promise that the insured will be compensated in the event of a loss It redistributes the costs of losses from the unfortunate few members to all the members of the insurance pool

2 What benefits does the insured receive from the insurance system?

When ppl take part in the insurance system, they receive some benefits The insured relieved of the uncertainty abt a loss The insured are compensated when the loss acually occurs If no loss occurs during a year, the insured still eliminate anxiety abt a loss

UNIT 11:

1 Name functions of money? Analyze one of the functions?

Functions of money include a medium of exchange, a measure or a unit

of acount, a store of value and a standard of deferred payments Money functions as a store of value As a store of value money is used to make purchases in the future This means that if we choose not to buy with our money today, we can save it to buy in the future

2 What are two type of money?

Two types of money are commodity money and token money Commodity money is a useful good serves as a medium of exchange The value of commodity money is abt equal to the value of the material contained in it Token money is a means of payment Its value or purchasing power greatly exceeds its cost of production

3 What is the most important function of money? And why?

Medium of exchange is the most important function of money because of the following reasons Money as a medium of exchange makes the trading process easier, quicker and more convenient In addition, once money serves as a medium of exchange, it also has other functions

UNIT 12

1 What are three tools of monetary policy?

Three tools of monetary policy are the reserve requirement, the discount rate and open market operations The reserve requirement is the percentage the Fed sets as the minimum amount of reserves as bank must have The discount rate is the rate of interest the Fed charges for those loans Open market opernations are the Fed’s buying and selling government securities

2 What is expansionary monetary policy?

MP is expansionary when the money supply is increased Expansionary

MP is used to increase the money supply by the lowering the reserve requirements, dropping the discount rate, or buying more bonds

3 What is restrictive monetary policy?

MP is restrictive when the money supply is decreased Restractive MP might occur when the economy is overheating Restrictive MP is used to decrease the money supply by raising reserve requirements, increasing the discount rate, or selling bonds

UNIT 14

1 What is the concept and the functions of the Forex market?

The Forex market is the market in which national currencies are exchanged The foreign exchange market is an over-the-counter market, the primary communication instruments being the telephone and the computer The foreign exchange market enables banks and international corporations to trade foreign currencies in large amounts The foreign exchange market trades 24 hours a day

2 What are participants in the Forex market?

Participants in the Forex market include customers (multinational corporations), market makers (banks) and brokers (specialist companies) Customers require foreign currencies for cross border trade

or investment business Market makers quote buying and selling rate for currencies They earn profits from the difference between buying and selling rates Brokers act as intermediaries between banks They contact the banks throughout the world to find the best dealing rate They charge a commission for their services

3 What are two types of transactions?

UNIT 15:

1 What is the difference between Debt market and Equity market?

There are some differences between debt market and equity market Firstly, debt market is a financial market in which debt instruments (bonds or mortgages) are traded while equity market is a financial in which equity instruments (common stocks) are traded Secondly, debt instruments are short-term, intermidiate-term and long-term whereas