|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. What refers to reasoning which constructs or evaluates deductive arguments?
2. Behavioral economics intertwine economics and what?
3. Gary Becker figured that the stock of skills, education, training and an individual's health constitutes about what percent of a modern economy's wealth?
4. Gary Becker is a professor of economics, sociology at what institution?
5. What is an investment position intended to offset potential losses that may be incurred by a companion investment?
Short Essay Questions
1. How is branding described as an economic strategy in Chapter 5?
2. How does the author of the Foreword describe Charles Wheelan's approach to explaining economics in "Naked Economics: Undressing the Dismal Science"?
3. How is the question of income security answered by the author in Chapter 6?
4. How does the health of the economy affect income inequality, according to the author in Chapter 6?
5. How is adverse selection described in the example of Hope Scholarships in Chapter 4?
6. Who wrote the book's Foreword? What does this individual say regarding the perception of economics and economists?
7. What is the first of the basic needs the author boils down for investment markets in Chapter 7?
8. What is the basic set of rules put forth by the author for those looking to invest in Chapter 7? How are risk and reward described?
9. What are the ramifications of decisions made in the world of finance and legislation, according to the author in the Introduction?
10. How does the author describe the concept of maximizing profits in Chapter 1? What examples does he give?
Write an essay for ONE of the following topics:
Essay Topic 1
Describe and analyze the Hope Scholarship program and the Clinton Administration. When were Hope Scholarships introduced and when did they dissipate? How are Hope Scholarships used as an example of adverse selection in the book? What are other examples where adverse selection can be seen in recent history?
Essay Topic 2
Define and discuss perverse incentives in economics. What example is used from Mexico City in Chapter 2? When did this governmental action take place and what results came of the actions? How was the pollution of Mexico City affected by legislation?
Essay Topic 3
Define, analyze and discuss the gross domestic product of the U.S. over the past century. When have the greatest changes taken place? What does this tell us about the economy during those times? How has technology affected the GDP in America?
This section contains 914 words
(approx. 4 pages at 300 words per page)