View a FREE sample

This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

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

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?
(a) Index fund.
(b) Money market.
(c) Public policy.
(d) Futures contract.

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

4. Who led the Cuban Revolution?
(a) Roberto Goizueta.
(b) Fulgencio Batista.
(c) Nicholas Sarkozy.
(d) Fidel Castro.

5. According to the principles of a market economy, if it's raining, it's time to sell what?
(a) Loans.
(b) Houses.
(c) Umbrellas.
(d) Boats.

Short Answer Questions

1. When was the Hope credit established?

2. What country withdrew from OPEC in 2008 after it became a net importer of oil?

3. Douglas Ivester was appointed as Chairman and Chief Executive Officer of Coca-Cola Company after whose death?

4. What rhetorical question do economists ask, according to the author in Chapter 1?

5. The Cuban Revolution deposed what dictator?

Short Essay Questions

1. What is the basic set of rules put forth by the author for those looking to invest in Chapter 7? How are risk and reward described?

2. How is the question of income security answered by the author in Chapter 6?

3. What solution does the author consider for the problem with the black rhinoceros in Chapter 2?

4. What is a "diversified portfolio"? What does the author state regarding this in Chapter 7?

5. How does the author describe the tactics used by OPEC in Chapter 1?

6. How does the author address the question of "getting rich quickly" in the market in Chapter 7?

7. What lessons can be learned from a monopoly situation according to the author in Chapter 4?

8. How is information a problem in the healthcare and insurance industries, as discussed in Chapter 5?

9. What do economists assume about human nature and motivation, according to the author in Chapter 1?

10. What human fallacies does the author address in the beginning of Chapter 7?

(see the answer keys)

This section contains 920 words (approx. 4 pages at 300 words per page) View a FREE sample