Naked Economics: Undressing the Dismal Science Quiz | Eight Week Quiz D

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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 4-7.

Multiple Choice Questions

1. What refers to a market where prices are determined by supply and demand?
(a) Controlled market.
(b) Free market.
(c) Influx market.
(d) Random market.

2. When did Ross Perot found Electronic Data Systems?
(a) 1971.
(b) 1962.
(c) 1977.
(d) 1955.

3. What is a contract between two parties that specifies conditions under which payments, or payoffs, are to be made between the parties?
(a) Exchange rate.
(b) Derivative.
(c) Futures contract.
(d) Legislation.

4. What is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames?
(a) Floating exchange rate.
(b) Index fund.
(c) Mutual fund.
(d) Money market.

5. What are negative results which occur while trying to achieve a goal for the common good?
(a) Unknown incentives.
(b) Perverse incentives.
(c) Ghost incentives.
(d) Abstract incentives.

Short Answer Questions

1. Who introduced the Hope credit?

2. When did the Cuban Revolution begin?

3. When did the Korean War end?

4. What is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investors risk tolerance, goals and investment time frame?

5. In economics and sociology, what refers to any factor that enables or motivates a particular course of action or counts as a reason for preferring one choice to the alternatives?

(see the answer key)

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