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

Multiple Choice Questions

1. Gary Becker is a professor of economics, sociology at what institution?
(a) The University of Montana.
(b) Fordham University.
(c) Harvard University.
(d) The University of Chicago.

2. In finance, what is a debt security in which the authorized issuer owes the holders a debt and, depending on the terms, is obliged to pay interest to use and/or to repay the principal at a later date?
(a) Stock.
(b) Option.
(c) Deductible.
(d) Bond.

3. According to Burton G. Malkiel in the Forward, economists often don't show a connection to what?
(a) Wall Street.
(b) Mathematics.
(c) Everyday life.
(d) Statistics.

4. The horns of the black rhinoceros are used to make what for the Yemenese people, according to the author in Chapter 2?
(a) Funnels.
(b) Paperweights.
(c) Necklaces.
(d) Daggers.

5. Michael Jensen refers to company stock options as what in Chapter 2?
(a) "Cocaine for businessmen."
(b) "A trough of money."
(c) "Wall Streets marijuana."
(d) "Managerial heroin."

6. With uniform rules and regulations, the cost of doing business in the private sector is what, according to the author in Chapter 3?
(a) Maintained.
(b) Raised.
(c) Lowered.
(d) Prohibitive.

7. What describes the extent to which time or effort is well used for the intended task or purpose?
(a) Proximity.
(b) Intention.
(c) Reliability.
(d) Efficiency.

8. What refers to reasoning which constructs or evaluates deductive arguments?
(a) Constructive reasoning.
(b) Deductive reasoning.
(c) Decisive reasoning.
(d) Critical reasoning.

9. A market economy delegates resources to an area where they are what, according to the author in Chapter 1?
(a) Most wealthy.
(b) Most productive.
(c) Least productive.
(d) Least wealthy.

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

11. What is the capital of the Republic of Cuba?
(a) Havana.
(b) Miami.
(c) Kingston.
(d) Tijuana.

12. The Cuban Revolution deposed what dictator?
(a) Fidel Castro.
(b) Fulgencio Batista.
(c) Roberto Goizueta.
(d) Nicholas Sarkozy.

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

14. What refers to the increasingly global relationships of culture, people and economic activity?
(a) Slavery.
(b) Globalization.
(c) Monopoly.
(d) Consolidation.

15. 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) Depression equation.
(b) Derivative equation.
(c) Differential equation.
(d) Deductive equation.

Short Answer Questions

1. According to the author, financial markets boil down to four basic simple needs. What is the second discussed in Chapter 7?

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. Michael Jensen is a professor at what university's business school?

4. When was Douglas Ivester born?

5. Economists ignored signs of problems in what year because they didn't want to face what might happen in the future, according to the author in the Introduction?

(see the answer keys)

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