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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. According to the author in Chapter 3, it's up to whom to consider the broad social consequences of decisions In a market economy?
2. What refers to the increasingly global relationships of culture, people and economic activity?
3. When did the Cuban Revolution begin?
4. In an insurance policy, what is the amount of expenses that must be paid out of pocket before an insurer will pay any expenses?
5. What is a term used in economics that refers to a market process in which "bad" results occur when buyers and sellers have asymmetric information?
Short Essay Questions
1. How does the author describe public policy in Chapter 8? What problems do politicians face in this area?
2. How does the author describe the relationship between the GDP and quality of life in India in Chapter 9?
3. What are the ramifications of decisions made in the world of finance and legislation, according to the author in the Introduction?
4. 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?
5. What is the difficulty of studying economics, according to the author of the Foreword? What is the role of economics in everyday activities?
6. What investment tactic is recommended for the average investor without much expertise in the market in Chapter 7?
7. What lessons can be learned from a monopoly situation according to the author in Chapter 4?
8. How is adverse selection described in the example of Hope Scholarships in Chapter 4?
9. What is the HDI? How is it described in Chapter 9?
10. Discuss the importance of information in economics. How does the author address the issue of information in Chapter 4?
Essay Topic 1
Describe and discuss the stock market and the New York Stock Exchange. How are the following terms used in Chapter 7 defined: risk, speculation, investment, derivatives, capital? What four basic needs to understand investment are discussed in Chapter 7?
Essay Topic 2
Define and analyze public policy, lobbyists, and subsidies. How has public policy changed in the past 20 years? How do subsidies affect the economy as a whole? What are the drawbacks to public policy and small groups, according to the author?
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 1,777 words
(approx. 6 pages at 300 words per page)