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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 2: The Inescapable Mathematics of Musical Chairs.

Multiple Choice Questions

1. What does Schelling say about a bike owner buying a bike for $90 and selling it for $150?
(a) He says that the owner gains a profit of $60.
(b) He says that the owner still has to pay overhead, so the exchange is equal.
(c) He says that the exchange is consistent with laws of capitalism.
(d) He says that the exchange replaces a real bicycle with abstract money.

2. What does Schelling say individuals react to?
(a) The collective unconscious.
(b) The fear of the mass.
(c) The desire of the mass.
(d) Their own stimuli.

3. What does Schelling call the phenomenon when two independent activities are dependent upon each other in that one is looked to as the other's source of growth?
(a) The acceleration principle.
(b) The transcendental relationship.
(c) A direct proportion.
(d) An economic proposition.

4. What does Schelling say has to be closely attended to, in economic analysis?
(a) Definition of terms.
(b) The invisible hand of the market.
(c) Rhetoric of equality.
(d) Economists' desire for certain outcomes.

5. What does Schelling say is essential to economic analysis?
(a) Narrative.
(b) Accounting statements.
(c) Income and economic growth.
(d) Profit and loss.

Short Answer Questions

1. What fear does Schelling say informs the behavior that is ingrained in people's decisions where to sit in a theater?

2. What does Schelling say the presence of a small group of black students in a college student body does for any economic propositions about the behavior of that student body?

3. What does Schelling say about Christmas cards?

4. How does Schelling describe a decision such as choosing a seat in a theater?

5. What additional reason does Schelling give for the desire to sit in the back of a theater?

(see the answer key)

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