Ron Young
BUS 101
Review Test #1
1. Please know the advantages and disadvantages for bond sellers and bond holders.
o Advantages for bond sellers
o Disadvantages for bond sellers
o Advantages for bond holders
o Disadvantages for bond holders
2. Please know the definitions of Macroeconomics and Microeconomics.
3. How do governments that provide a variety of mandated services for their citizens, fund
the cost of these services?
4. What is the relationship between the value of bonds on the secondary market and
interest rates?
5. Please know the characteristics of the various types of stocks (Blue Chip, Income,
Defensive, Growth and Speculative).
o Blue Chip Stocks
o Growth Stocks
o Income Stocks
o Speculative Stocks
o Defensive Stocks
6. How do local tax rates have an impact on where on where businesses locate?
7. Please know how corporate profits are distributed (dividends and retained earnings).
8. Who is Adam Smith? What did he do? When did he do it? Why should we care?
9. Please know Adam Smith’s basic beliefs and his perceived threats to capitalism.
10. How do full-service brokers differ from discount brokers?
11. What are the advantages of investing in stock over the (other) types of investments?
12. What are the factors of production?
13. Please know the terms stock splits and round lots.
14. Questions will be asked about the types of unemployment mentioned in class.
15. What are GDP and CPI?
16. Please know the characteristics of stagflation, inflation and deflation.
17. Basic characteristics of capitalism, mercantilism, communism, and socialism were
presented. Please know these characteristics.
o Mercantilism
o Capitalism
o Socialism
o Communism
18. Please know other stuff. Including: