|Name: _________________________||Period: ___________________|
This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. According to the author in Chapter 2, a horn from a black rhinoceros can fetch what amount on the black market?
2. Gary Becker is a professor of economics, sociology at what institution?
(a) The University of Montana.
(b) Fordham University.
(c) The University of Chicago.
(d) Harvard University.
3. Ross Perot ran for President of the United States in what year?
4. What refers to the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value?
(a) Human capital.
(b) Futures contract.
(c) Differential equation.
(d) Index fund.
5. According to Burton G. Malkiel in the Forward, economists often don't show a connection to what?
(a) Wall Street.
(c) Everyday life.
Short Answer Questions
1. Human capital is extremely important in economics because it is also tied together with what?
2. What rhetorical question do economists ask, according to the author in Chapter 1?
3. According to the author, financial markets boil down to four basic simple needs. What is the first discussed in Chapter 7?
4. What is a contract between two parties that specifies conditions under which payments, or payoffs, are to be made between the parties?
5. According to the author, there are two lessons to be learned from a monopoly situation. What is the first?
Short Essay Questions
1. How does the author describe Douglas Ivester's marketing tactic in Chapter 1?
2. How has the market economy contributed to a higher standard of living in America, according to the author in Chapter 1?
3. What lessons can be learned from a monopoly situation according to the author in Chapter 4?
4. What do economists assume about human nature and motivation, according to the author in Chapter 1?
5. What are the ramifications of decisions made in the world of finance and legislation, according to the author in the Introduction?
6. How does the author describe the concept of maximizing profits in Chapter 1? What examples does he give?
7. How does the author describe the concept of "trade-offs" in Chapter 1? How do trade-offs apply to individuals and to the economy?
8. What example does the author give for the negative effect of incentives in Chapter 2?
9. How is the black rhinoceros described in Chapter 2? What are the horns of the animal worth in Yemen, and why?
10. How is information a problem in the healthcare and insurance industries, as discussed in Chapter 5?
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