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

Multiple Choice Questions

1. What is a mathematical equation for an unknown function of one or several variables that relates the values of the function itself and its derivatives of various orders?
(a) Deductive equation.
(b) Derivative equation.
(c) Differential equation.
(d) Depression equation.

2. What refers to the stock of competencies, knowledge and personality attributes embodied in the ability to perform labor so as to produce economic value?
(a) Human capital.
(b) Index fund.
(c) Differential equation.
(d) Futures contract.

3. What is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames?
(a) Money market.
(b) Floating exchange rate.
(c) Index fund.
(d) Mutual fund.

4. When was Douglas Ivester born?
(a) 1922.
(b) 1958.
(c) 1947.
(d) 1939.

5. 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?
(a) 1997.
(b) 1988.
(c) 1993.
(d) 2000.

6. Human capital is extremely important in economics because it is also tied together with what?
(a) Productivity.
(b) Collateral.
(c) Inflation.
(d) Security.

7. 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?
(a) Supply and demand.
(b) Money market.
(c) Adverse selection.
(d) Floating exchange rate.

8. 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?
(a) Pyongyang.
(b) New York.
(c) Mexico City.
(d) London.

9. OPEC has maintained its headquarters where since 1965?
(a) Vienna.
(b) Havana.
(c) Sydney.
(d) Toronto.

10. According to the author in Chapter 7, the basic set of rules and investor should follow is to do what?
(a) Research, fact check, invest.
(b) Research, invest, watch.
(c) Save, invest, and repeat.
(d) Invest, watch, sell.

11. What does CEO stand for?
(a) Cheap Everpresent Oil.
(b) Civil Engineer's Office.
(c) Chief Executive Officer.
(d) Continental Energy Options.

12. In Chapter 2, the author discusses how the black rhinoceros is nearly extinct and that the horns are considered what?
(a) An evil potion.
(b) An aphrodesiac.
(c) An alkaloid.
(d) A poison.

13. Cuba remained a territory of Spain until the Spanish-American War ended in what year?
(a) 1898.
(b) 1862.
(c) 1913.
(d) 1841.

14. Douglas Ivester was appointed as Chairman and Chief Executive Officer of Coca-Cola Company after whose death?
(a) Roberto Goizueta.
(b) Mark Miringhoff.
(c) George Stigler.
(d) Ronald Coase.

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

Short Answer Questions

1. When did the Cuban Revolution begin?

2. According to the author in Chapter 3, it's up to whom to consider the broad social consequences of decisions In a market economy?

3. According to the author in Chapter 1, companies want to profit, and consumers want what?

4. According to Burton G. Malkiel in the Forward, economists often don't show a connection to what?

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

(see the answer keys)

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