|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 is an economic model of price determination in a market that concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers will equal the quantity supplied by producers?
2. 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?
3. What represents the original capital paid into or invested in the business by its founders?
4. The Lehman Brothers bank problem in 2008 occurred because the banks weren't what, according to the author?
5. According to the author in Chapter 2, the average annual income is what in the location where black rhinoceros horns are worth much on the black market?
Short Essay Questions
1. What is the first of the basic needs the author boils down for investment markets in Chapter 7?
2. How does the author describe the concept of "trade-offs" in Chapter 1? How do trade-offs apply to individuals and to the economy?
3. Who wrote the book's Foreword? What does this individual say regarding the perception of economics and economists?
4. How does the author address the question of "getting rich quickly" in the market in Chapter 7?
5. How does human capital relate to productivity? How does this in turn reflect the economic well-being of a nation, according to the author in Chapter 6?
6. What is the difficulty of studying economics, according to the author of the Foreword? What is the role of economics in everyday activities?
7. How is adverse selection described in the example of Hope Scholarships in Chapter 4?
8. What lessons can be learned from a monopoly situation according to the author in Chapter 4?
9. What examples does the author give for the uninformed relaying false information in the Introduction?
10. 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?
Write an essay for ONE of the following topics:
Essay Topic 1
Define human capital and discuss how this term applies to the biographies and careers of Bill Gates and Gary Becker. How is a person's human capital valuated? How is income inequality worsened by the recession that began in 2008? How has the divide between those working on Wall Street and those working in the Main Street sector grown bigger? Why?
Essay Topic 2
Discuss the biography and career of Charles Wheelan. What history and expertise does Wheelan have in the field of economics? What publications has Wheelan written for? How many books has he published? What criticism and/or awards did he earn for "Naked Economics: Undressing the Dismal Science"?
Essay Topic 3
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?
This section contains 1,058 words
(approx. 4 pages at 300 words per page)