|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. OPEC has maintained its headquarters where since 1965?
2. With uniform rules and regulations, the cost of doing business in the private sector is what, according to the author in Chapter 3?
3. In finance, what is a debt security in which the authorized issuer owes the holders a debt and, depending on the terms, is obliged to pay interest to use and/or to repay the principal at a later date?
4. What does CEO stand for?
5. According to the author, insurance companies want to save money while doctors want to help patients and avoid what?
Short Essay Questions
1. Discuss the importance of information in economics. How does the author address the issue of information in Chapter 4?
2. How does the author address the question of "getting rich quickly" in the market in Chapter 7?
3. How does the author describe the concept of maximizing profits in Chapter 1? What examples does he give?
4. What solution does the author consider for the problem with the black rhinoceros in Chapter 2?
5. How has the market economy contributed to a higher standard of living in America, according to the author in Chapter 1?
6. How is branding described as an economic strategy in Chapter 5?
7. 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?
8. What lessons can be learned from a monopoly situation according to the author in Chapter 4?
9. How do the resources of a country reflect its economic well-being, according to the author in Chapter 6?
10. How does the author describe the tactics used by OPEC in Chapter 1?
Write an essay for ONE of the following topics:
Essay Topic 1
Discuss the author's example from Chapter 2 involving Yemen and the black rhinoceros. What is the value of the black rhino's horns and why are these horns so highly sought after? How does he describe the role of ecotourism as an environmental and economical solution? When did ecotourism first develop?
Essay Topic 2
Discuss the career of economist Burton G. Malkiel and the efficient market hypothesis. When was the efficient market hypothesis developed? What ideas are presented in Malkiel's "A Random Walk Down Wall Street"? What does Malkiel write in the Forward to "Naked Economics: Undressing the Dismal Science"?
Essay Topic 3
Describe and discuss the circumstances and impacts of monopolies. What are examples of recent monopolies in the U.S.? How were these monopolies dealt with? What governmental regulations ensure against monopoly? What does the author say can be learned from monopolies?
This section contains 936 words
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