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

Multiple Choice Questions

1. What is an investment strategy that attempts to balance risk versus reward by adjusting the percentage of each asset in an investment portfolio according to the investors risk tolerance, goals and investment time frame?
(a) Futures contract.
(b) Money market.
(c) Adverse selection.
(d) Asset allocation.

2. Douglas Ivester's goal was achieving what when he told his sales team to pass free Coca-Cola around as the Berlin Wall toppled?
(a) Reinstitution of Communism.
(b) Brand recognition.
(c) Freedom for the German people.
(d) World domination.

3. According to the author in Chapter 2, a horn from a black rhinoceros can fetch what amount on the black market?
(a) $30,000.
(b) $50,000.
(c) $120,000.
(d) $15,000.

4. What contends that prices of publicly traded assets reflect all publicly available information?
(a) The uniform pay scale.
(b) Adverse selection.
(c) The efficient market hypothesis.
(d) Supply and demand.

5. When did the Cuban Revolution end?
(a) 1984.
(b) 1979.
(c) 1996.
(d) 1959.

6. What country withdrew from OPEC in 2008 after it became a net importer of oil?
(a) The United States.
(b) Indonesia.
(c) Mexico.
(d) Egypt.

7. According to the author in Chapter 2, the average annual income is what in the location where black rhinoceros horns are worth much on the black market?
(a) $8,700.
(b) $6,000.
(c) $2,500.
(d) $1,000.

8. Burton G. Malkiel is an American economist, most famous for what classic finance book?
(a) The Wall Street MBA: Your Personal Crash Course in Corporate Finance.
(b) Extreme Money: Masters of the Universe and the Cult of Risk.
(c) A Random Walk Down Wall Street.
(d) The Millionaire Next Door: The Surprising Secrets of America's Wealthy.

9. What is a form of tourism involving visiting fragile, pristine, and usually protected areas, intended as a low impact and often small scale alternative to standard commercial tourism?
(a) Geotourism.
(b) Hippytourism.
(c) Ecotourism.
(d) Nativetourism.

10. In economics and sociology, what refers to any factor that enables or motivates a particular course of action or counts as a reason for preferring one choice to the alternatives?
(a) Punishment.
(b) Belief.
(c) Barrier.
(d) Incentive.

11. Gary Becker was awarded the Nobel Memorial Prize in Economic Sciences in what year?
(a) 1988.
(b) 2003.
(c) 1997.
(d) 1992.

12. 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) Invest, watch, sell.
(c) Research, invest, watch.
(d) Save, invest, and repeat.

13. Michael Jensen is a professor at what university's business school?
(a) Yale University.
(b) Fordham University.
(c) Harvard University.
(d) The University of Chicago.

14. When did the Korean War begin?
(a) 1950.
(b) 1948.
(c) 1959.
(d) 1931.

15. The Hope Scholarship program was shut down after how many years, according to the author?
(a) 2.
(b) 5.
(c) 9.
(d) 4.

Short Answer Questions

1. Gary Becker received the United States Presidential Medal of Freedom in what year?

2. In finance, what is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price?

3. What is a professionally managed type of collective investment scheme that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities?

4. What are negative results which occur while trying to achieve a goal for the common good?

5. With uniform rules and regulations, the cost of doing business in the private sector is what, according to the author in Chapter 3?

(see the answer keys)

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