EEB Speaking part 1 questions (with answers)

Unit 1: Three economic issues

1. How many types of economic systems are there?
- Two primary types: capitalism and socialism.
2. In capitalism economic systems, who owns property?
- Property is owned by individuals.
3. In socialism economic systems, who owns property?
- Property is owned by the government.
4. What three questions must any economic system answer?
- What, How, and For whom to produce.
Unit 2: Supply and demand
5. What is demand in the economy?
- Demand is the quantity of a good buyers wish to purchase at each conceivable price.
6. What is supply in the economy?
- Supply is the quantity of a good sellers wish to sell at each conceivable price.
7. Is demand a particular quantity? / Is supply a particular quantity?
- No. It is a full description of the quantity of a good that the buyer would buy at each and every
price. / - No. It is a full description of the quantity of a good that the seller would sell at each
and every price.

Unit 3: Inflation
8. What is inflation?
- Inflation is an economic condition in which prices for consumer goods increase and the value
of money / purchasing power decreases.
9. How many causes of inflation are there? What are they?
- Three main causes: (1) excessive government spending (2) money supply increases faster than
goods supply (3) increase in wages leads to higher cost of production.
10. How may a deficit be created?
- Governments spend more money than what they receive through taxes and other revenues.
11. Can you name some kinds of inflation?
- Moderate inflation (single digit), galloping inflation (2-3 digit), hyperinflation (4 or more
digit).
12. What is double or triple digit / four or more digit inflation called?
- Galloping inflation / Hyperinflation.
13. What may be the most important cause of inflation?
- Excessive government spending.

Unit 4: Direct and indirect taxes

14. What is the direct tax?
- The kind of tax imposed on a person, household, or enterprise with the expectation that the
taxpayer will bear the tax burden and not pass it onto someone else.
15. What is the indirect tax?
- The kind of tax imposed on a person, household, or enterprise with the expectation that the
taxes will be passed onto customers in the form of higher prices.
16. What do governments use taxes for?
- Welfare and public services including education, health care, pensions, unemployment
benefits, public transportation, etc.
Unit 5: Central banks
17. How many functions of a central bank are there? (What are they?)
- Four functions: (1) implement monetary policy, (2) supervise exchange rates, (3) supervise
commercial banks, and (4) rescue commercial banks when they go bankrupt.
18. What is a “bank run”?
- A situation in which customer of banks take their money out because they think their bank is
not trustworthy anymore.
19. What is the official name of the central bank of Vietnam?
- The State Bank of Vietnam.
20. How long is the serving term of the bank governor and vice governors?
- 5 years.

Unit 6: Accounting
21. What is the purpose of accounting?
- Providing financial picture of a business firm.
22. What is ROI?
- ROI stands for “Return On Investment”. It is a performance measure to evaluate the
efficiency of an investment or to compare the efficiency of a number of different investments.
23. How is ROI calculated?
- The benefit (return) of an investment is divided by the cost of the investment.
24. What are the two types of records that are prepared by most businesses?
- The income statement and balance sheet.

Unit 7: Credit cards

25. What are some advantages of credit cards?
- They permit people to make large purchases and help for emergencies.
26. What are some disadvantages of credit cards?
- Card holders can buy excessively without paying attention whether they will be able to pay the
debt.
27. What are the real problem with credit cards?
- The owned amounts must be paid back.

Unit 8: International trade

28. What are the various markets in which the sale of goods and services take place?
- Local, regional, national and international markets.
29. What is international trade?
- The exchange of goods and services in the world / the global market
30. What resources help determine which products a nation will specialize in?
- Natural, human, and technical resources.
31. According to the theory of comparative advantage, what should a nation do?
- A nation should concentrate on the products that it can produce most efficiently and
profitably.