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. What is a contract between two parties that specifies conditions under which payments, or payoffs, are to be made between the parties?
(a) Legislation.
(b) Derivative.
(c) Futures contract.
(d) Exchange rate.

2. In economics, what is a good that is non-rival and non-excludable?
(a) A public good.
(b) A private good.
(c) A government good.
(d) A corporate good.

3. When was the Hope credit established?
(a) 1974.
(b) 1999.
(c) 1985.
(d) 1992.

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

5. When was Burton G. Malkiel born?
(a) 1925.
(b) 1932.
(c) 1918.
(d) 1907.

Short Answer Questions

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

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

3. What is a term used in economics that refers to a market process in which "bad" results occur when buyers and sellers have asymmetric information?

4. What does OPEC stand for?

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?

Short Essay Questions

1. How does the author of the Foreword describe the focus the book of "Naked Economics: Undressing the Dismal Science"? Does he find it balanced? Why?

2. How does the author describe Douglas Ivester's marketing tactic in Chapter 1?

3. How is adverse selection described in the example of Hope Scholarships in Chapter 4?

4. What investment tactic is recommended for the average investor without much expertise in the market in Chapter 7?

5. How does human capital relate to productivity? How does this in turn reflect the economic well-being of a nation, according to the author in Chapter 6?

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

7. What are the second through fourth of the basic needs the author boils down for investment markets in Chapter 7?

8. How does the health of the economy affect income inequality, according to the author in Chapter 6?

9. Discuss the importance of information in economics. How does the author address the issue of information in Chapter 4?

10. How do the resources of a country reflect its economic well-being, according to the author in Chapter 6?

(see the answer keys)

This section contains 993 words (approx. 4 pages at 300 words per page) View a FREE sample