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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 4-7.

Multiple Choice Questions

1. OPEC is an intergovernmental organization of how many oil-producing countries?
(a) 23.
(b) 8.
(c) 5.
(d) 12.

2. According to the author, there are two lessons to be learned from a monopoly situation. What is the first?
(a) Government shouldn't actually do the work of maintaining infrastructure.
(b) Government shouldn't provide any service that could be covered by the private sector.
(c) Governments should maintain the financial infrastructure more.
(d) Governments should provide more services.

3. What does the author refer to as a situation where individuals work in their own best interest, leading to an improved standard of living for society in general?
(a) Capitalism.
(b) Money market.
(c) Communism.
(d) Asset allocation.

4. What is the third simple need of financial markets, as discussed in Chapter 7?
(a) Raising capital.
(b) Storing, protecting and making profitable use of excess capital.
(c) Speculation.
(d) Insuring against risk.

5. In what political structure does the government set the price and decide what's on the shelves?
(a) Marxism.
(b) Capitalism.
(c) Utopianism.
(d) Communism.

Short Answer Questions

1. Where did politicians try to deal with the level of pollution by limiting driving based on license plate numbers, according to the author in Chapter 2?

2. What is a collective investment scheme that aims to replicate the movements of an index of a specific financial market regardless of market conditions?

3. In what year did the French government try to address its unemployment rates with what the author calls the economic equivalent of fool's gold?

4. In Chapter 6, the author discusses poverty and income equality, using the example of what billionaire?

5. In economics, what is a good that is non-rival and non-excludable?

(see the answer key)

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