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) 1992.
(b) 1988.
(c) 1997.
(d) 2003.

2. What does OPEC stand for?
(a) Organization of Petroleum Exporting Countries.
(b) Oil and Petroleum Exclusion Clause.
(c) Original Plan Excluding Copyright.
(d) Oval Palace Executive Class.

3. 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) 2000.
(b) 1997.
(c) 1993.
(d) 1988.

4. According to the author, financial markets boil down to four basic simple needs. What is the second discussed in Chapter 7?
(a) Raising capital.
(b) Speculation.
(c) Storing, protecting and making profitable use of excess capital.
(d) Insuring against risk.

5. What is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets?
(a) Subsidy.
(b) Deductible.
(c) Interest.
(d) Derivative.

Short Answer Questions

1. Who introduced the Hope credit?

2. In what year did Douglas Ivester tell his sales team to pass free Coca-Cola around as the Berlin Wall toppled?

3. What is the financial system consisting of institutions and regulators that act on the international level, as opposed to those that act on a national or regional level?

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

5. What does the author refer to as a situation where individuals work in their own best interest, leading to an improved standard of living for society in general?

Short Essay Questions

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

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

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

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

5. What is the difficulty of studying economics, according to the author of the Foreword? What is the role of economics in everyday activities?

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

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

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

9. How is the black rhinoceros described in Chapter 2? What are the horns of the animal worth in Yemen, and why?

10. Who wrote the book's Foreword? What does this individual say regarding the perception of economics and economists?

(see the answer keys)

This section contains 961 words (approx. 4 pages at 300 words per page) View a FREE sample