1. What does economics study?

Economics studies (v) how people choose to use resources to produce goods and
services to improve their well-being.

2. What do resources include?

Resources include the time and talent people have available, the land, buildings,
equipment, and other tools on hand, and the knowledge of how to combine them to
create useful products and services.

3. What does the term “well-being” mean?

Well-being means the satisfaction that people gain from the consumption of goods &
services, the time shared with your relatives, friends…

4. What are two types of economics?

microeconomics and macroeconomics

5. What does microeconomics study?

Microeconomics is branch of economics that deals with the how consumers and firms
behave while making decisions on the allocation of scare resources.

6. What does macroeconomics study?

is a branch of economics that studies the economic activity of entire country and
economy-wide phenomena.

7. What can you learn from the economic theory of Adam Smith?

It says that because of their own interests, people produce goods and wealth that
benefit all society.

Adam Smith believe that the government (the visible hand) should not restrict or
interfere in the market.

8. What can you learn from the economic theory of Marxism?

9. What can you learn from the economic theory of Keynesian?

The theory of Keynes describes how governments use macroeconomic policies to
regulate the economy, ensuring the social and economic stability

10. In general, how can people benefit from studying economics?

Studying economics can help people and countries become weathy and also can help
one understand human thought and behavior.

11. What is a planned economy?

Planned economy is an economic system in which all production, distribution and

consumption quotas are fixed beforehand

The structure of the market is deliberately planned by the state

12. What is a market economy?

A Free Market economy is an economic system in which the market is regulated by the law of
supply and demand

13. What is a mixed economy?

It is an economic system in which/ some goods and services are produced by the
government/ and some by private enterprise

14. What is microeconomics about?

15. Who make allocation decisions in a planned economy?

By The Government.

16. Who make allocation decisions in a modern market economy?

By consumers, workers and firms.

17. What does the term “trade-offs” mean?

Trade-offs exchanges involving the people’s choices to maximize their benefits

18. How do consumers make trade-offs?

Trade off the purchase of more of some goods with the purchase of less of others

Trade off current consumption for future consumption

19. How do workers make trade-offs?

Trade off working now with continued education

Trade off in the choice of employment

Trade off labor for leisure

20. How do firms make trade-offs?

Trade off producing some kinds of products instead of the others

Trade off hiring more workers, building new factories or doing both

21. What are three important themes of microeconomics?

The idea of making optimal trade-offs, the role of prices and the central roles of
markets.

22. What are two major macroeconomic policies?

Monetary policy and Fiscal policy.

23. What do monetary policies control?

It controls the money supply of a nation.

24. What do fiscal policies control?

It controls the government’s revenue and spending

25. What are main objective of macroeconomic policies?

to promote economic growth/ to keep inflation under control

26. What are differences between microeconomics and macroeconomics?

-Microeconomics is the study of individual and business decisions, while

macroeconomics looks at higher up country and government decisions.
-Microeconomics focuses on supply and demand and other forces that determine the
price. Macroeconomics centers on economy-wide phenomena such as GDP, national
income, inflation…
-Microeconomics takes a bottoms-up approach and Macroeconomics takes a top-down
approach
27. What is demand?

Demand is quantities of goods and services that buyers are willing and able to buy at
various prices.

28. What is supply?

Supply is quantities of goods and services that sellers are willing and able to sell at
various prices.

29. What is the difference between demand and quantity demanded?

Demand is quantities of goods and services that buyers are willing and able to buy at
various prices. While, Quantity demanded the quantity goods and services that buyers
are willing and able to buy at a certain price.

30. What is the difference between supply and quantity supplied?

Supply is quantities of goods and services that sellers are willing and able to sell at
various prices. While, Quantity supplied the quantity goods and services that sellers
are willing and able to sell at a certain price

31. What is the relationship between price and quantity demanded/ quantity
supplied?

if price of goods increases, the quantity demanded will decrease/ increase and vice
versa.

32. What are shift factors of demand?

Shift factors of demand are society’s income, prices of other goods, expectations of
consumers and tastes, population,…

33. What are shift factors of supply?

Shift factors of supply are prices of inputs, technology, taxes, suppliers’ expectations

34. What is a demand curve?

Demand curve is a graphic which shows the relationship between product price and
the quantity of the product demanded

35. How does a change in price affect the demand curve?

36. How does a change in shift factors affect the demand curve?

37. What is a supply curve?

Demand curve is a graphic which shows the relationship between product price and
the quantity of the product supplied.

38. How does a change in price affect the supply curve?

39. How does a change in shift factors affect the supply curve?

40. What is equilibrium?

41. What is public finance concerned with?

42. What types of taxes contribute the most to tax revenues?

43. What are trust funds?

Trust funds are revenues generated from payroll taxes

44. What are federal funds?

Federal funds are general revenues generated mainly from income taxes and corporate
income taxes

45. What are trust funds used for?

Pay for very specific programs such as social security and medicare.

46. What are federal funds used for?

Federal funds are used to fund the government in general.

47. How many ways in which the treasury borrow money?

48. By what way does the Treasury borrow money?

49. How can people buy a bond or other Treasury securities?

50. What is debt held by the public?

Debt held by the public is the total amount of money the government owes to its
creditors in the general public

51. What is debt held by federal account?

Debt held by federal accounts is the amount of money that the Treasury borrows from
the surplus of trust funds

52. What is fiscal policy?

Fiscal policy is a government policy related to taxation and public spending

53. What is deficit?

Deficit is the total amount by which money spent is more than money received.

54. How can the government finance the deficit?

55. What is deficit spending?

Deficit spending is a situation in which/ a company or especially a government spends

more money than it collects in period of time

56. I the deficit spending helpful and harmful to the economy?

Deficit spending is helpful for the economy when unemployment is high or economic
growth is low.

Deficit spending is harmful for the economy when unemployment is low or inflation
is high.

57. What are types of fiscal policy?

Expansionary and contractionary fiscal policy.

58. What is expansionary fiscal policy?

Fiscal policy is expansionary when taxation is reduced or public spending is increased

59. What is contractionary fiscal policy?

Fiscal policy is contractionary when taxation is increased or public spending is

reduced

60. When is expansionary fiscal policy used?

When the economy is not growing fast enough or unemployment is too high

61. When is contractionary fiscal policy used?

when the economy is growing too fast or inflation is high.

62. What factors do governments have to do in making fiscal policies?

They are the level of economic growth/ or unemployment likely in the future/ ,
political considerations (cân nhắc chính trị)/ , fiscal policies of other countries/ and
the requirements of the International Monetary Fund.

63. What are main types of taxes?

64. What is the main function of taxation?

65. What are functions of taxation?

66. What is import tax/ excise duty/ capital gains tax/ capital transfer tax/
corporate tax/ income tax?

67. What is progressive tax/

68. What is tax deductible?

69. What is tax loss?

70. What is tax shelter?

71. What is tax avoidance?

72. What is tax evasion?

73. What is laundering money?

74. What is tax haven?

75. What is insurance?

76. What is premium?

77. How can an insurance system operate?

78. What do the insured receive when the loss occurs?

79. What do the insured receive when the loss doesn’t occur?

80. What do the insured receive from an insurance policy?

81. What are the roles of insurance?

82. What is the concept of money?

83. What are functions of money?

84. Why is it said that money is medium of exchange?

85. What is medium of exchange?

86. Why is it said that money is measure of exchange?

87. What is unit of account?

88. Why is it said that money is store of exchange?

89. Why is it said that money is standard of deferred payment?

90. What are types of money?

91. What is commodity money?

92. What is token money?

93. What are some main differences between commodity money and token
money?

94. What is monetary policy?

95. What are objectives of monetary policy?

96. What are tools of monetary policy?

97. What is the reserve requirement?

98. What does the reserve requirement depend on?

99. What is the discount rate?

100. What are open market operations?

101. How many types of monetary policy are there? What are they?

102. What is expansionary monetary policy?

103. What is restrictive monetary policy?

104. When does the central bank apply expansionary monetary policy/
restrictive monetary policy?
105. What is the foreign exchange market?

106. What are features of the foreign exchange market?

107. What are spot transactions?

108. What are foward transactions?

109. Who are participants in the foreign exchange market?

110. What are financial markets?

111. What is the debt market?

112. What is the equity market?

113. What is primary market?

114. What is secondary market?

115. What is money market?

116. What is capital market?