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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What does Schelling say about mathematical identities?
(a) They are constraining.
(b) They are continuous.
(c) They are unreliable.
(d) They are discrete.

2. What was the status of nuclear weapons under Kennedy and Johnson?
(a) They were classified as weapons of mass destruction (WMD).
(b) They were banned.
(c) They were classified as unconventional weaponry.
(d) They were heavily regulated.

3. What does the success of a binary choice model depend on, in Schelling's analysis?
(a) The breadth of the underlying propositions.
(b) The inclusiveness of the model's input.
(c) The range of factors it excludes.
(d) The reliability of the input.

4. What example does Schelling use to illustrate decisions of the majority that can be known?
(a) Whether people are only children.
(b) What language people speak.
(c) How to dress for an office environment.
(d) Whether people are vaccinated.

5. What was the status of nuclear weapons under Truman's successor?
(a) They were classified as weapons of mass destruction (WMD).
(b) They were banned.
(c) They were heavily regulated.
(d) They became conventional weapons.

6. What does Schelling say about arms control?
(a) Is it self-assured destruction.
(b) It is a self-defeating process.
(c) It is a self-fulfilling process.
(d) It is a unilateral vulnerability.

7. What do hockey players fear in regard to the issue of wearing helmets, in Schelling's analysis?
(a) Fear of inhibiting performance.
(b) Fear of serious injury.
(c) Fear of ridicule.
(d) Fear of seeming submissive to the league.

8. What does Schelling say would be the result of his hypothetical case?
(a) He says that there would likely be smaller communities in some cultures. He says that there would likely be larger communities in some cultures.
(b) He says that there would likely be larger communities in some cultures.
(c) He says that it would be impossible to know what would happen.
(d) He says that the outcome would depend on the sample size.

9. In what war did Truman's successor have to decide whether to drop the bomb?
(a) The Korean War.
(b) Vietnam.
(c) The Falklands conflict.
(d) The Greek Civil War.

10. What example does Schelling use to explain the closed system with a density enhancement?
(a) Distribution for a nursing home.
(b) Distribution for a university.
(c) Distribution for a highway toll system.
(d) Distribution for local co-op market.

11. How can one gather information about the choice of the majority, in Schelling's example?
(a) By polling.
(b) By detailed research.
(c) By observation.
(d) By statistical analysis.

12. How is genetic modification different from eugenics?
(a) They are effectively the same.
(b) Genetic modification is more subtle.
(c) Genetic modification theories have already led to ethnic cleansing.
(d) Eugenics allows for selection of more minute traits.

13. What does Schelling say about binary choices?
(a) Everyone faces them at some point.
(b) They are like life or death decisions.
(c) Sometimes they are paradoxes.
(d) They are the building blocks of economic modeling.

14. What does Schelling say happens when the youngest ten percent of a population moves?
(a) The average age of the group decreases.
(b) The population is now considered more distributed.
(c) There is a new "youngest" ten percent.
(d) The old people are next to

15. What does it mean if the median age is 45 in an open model?
(a) Everyone under 25 and over 70 will move out.
(b) People will stay until they move to nursing homes.
(c) People over 90 will stay to be part of the group.
(d) Everyone under 35 and everyone over 65 will move out.

Short Answer Questions

1. What continuous variable does Schelling say parents could select for?

2. What assumption does Schelling make about people's feelings about nuclear weapons?

3. Why does Schelling say hockey players resist wearing helmets, when they already know they are safer?

4. What is an externality?

5. What does Schelling say about an equilibrium division of the population?

(see the answer keys)

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