Cardiff Met Applicant Day

Why is it important to study Economics?

• To predict the next financial crisis and become a billionaire

• To learn how to avoid paying taxes legally

• To make informed decisions as a citizen and understand how the world works

• To win arguments with my parents

• To impress people at dinner parties with fancy economic terms

Answer explanation

Studying economics is crucial for making informed decisions as a citizen. It helps us understand how economic systems function, enabling us to navigate societal issues and contribute to discussions about policies that affect our lives.

Why is studying finance important?

• So you can finally understand what’s happening in "The Wolf of Wall Street."

• To make informed financial decisions and manage money wisely.

• To memorize stock market jargon and sound smart at networking events.

• So you can retire at 25 and live on a yacht.

Answer explanation

Studying finance is crucial for making informed financial decisions and managing money wisely, which is essential for personal and professional success.

When is it generally a good idea to take on debt?

• To buy the latest designer clothes and impress your friends

• To go on a luxury holiday and worry about the payments later

• Only when it’s used for investments that can generate future returns

• Whenever you feel like it—credit cards are free money, right?

Answer explanation

Taking on debt is generally advisable only when it is used for investments that can generate future returns, as this can lead to financial growth. The other options involve unnecessary spending and can lead to financial strain.

The four largest food commodity traders in the world control?

• Only 25% of the world grain trade

• 30% of the world grain trade

• 40% of the world grain trade

• 50% of the world grain trade

• More than 75% of the world grain trade

Answer explanation

The four largest food commodity traders dominate the market significantly, controlling more than 75% of the world grain trade, which highlights their substantial influence in global food supply.

In Q4 2024 alone, Tesla earned $692 million from selling?

• Cars

• Batteries

• Carbon Credits

• Software

Answer explanation

In Q4 2024, Tesla earned $692 million primarily from selling carbon credits, which are tradable certificates that allow companies to offset their carbon emissions. This revenue stream has become significant for Tesla.

The UK debt to GDP ratio is currently at?

• 80%

• 90%

• 101%

• Undisclosed

Answer explanation

The UK debt to GDP ratio is currently reported at 101%, indicating that the country's debt exceeds its economic output. This figure reflects the financial challenges faced by the UK.

Since January 2001, gold has outperformed the FTSE 100 by

• More than 250%

• More than 400%

• More than 500%

• More than 600%

Answer explanation

Since January 2001, gold has significantly outperformed the FTSE100, with returns exceeding 600%. This reflects gold's status as a safe-haven asset during economic uncertainty, making it a strong investment compared to the FTSE100.

Currently (Feb 2025), the average international price of natural gas is:

• At the same level as 2020-2021

• At the same level as 2021-2022

• At the same level as 2022-2023

• At the same level as 2023-2024

Answer explanation

As of February 2025, the average Natural Gas international prices are reported to be at the same level as in 2020-2021 and 2022-2023, indicating stability in pricing compared to those years.

If you found a £20 note on the ground, what would be the most financially responsible thing to do?

• Buy 20 scratch cards and hope for the best.

• Save it in a high-interest savings account.

• Exchange it for 5,000 pennies and throw them in a fountain for good luck.

• Buy a coffee and a pastry because life is short.

Answer explanation

Saving the £20 in a high-interest savings account is the most financially responsible choice, as it allows the money to grow over time, rather than spending it impulsively or on low-value items.

If money really grew on trees, what would be the biggest economic problem?

• Inflation

• Banks would have to build treehouses

• Everyone would quit their jobs and become gardeners

• The government would introduce a “Tree Tax”

Answer explanation

If money grew on trees, it would lead to an oversupply of money, causing inflation. Prices would rise as the value of money decreases, making inflation the biggest economic problem.