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

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

3. Gary Becker figured that the stock of skills, education, training and an individual's health constitutes about what percent of a modern economy's wealth?
(a) 60.
(b) 42.
(c) 35.
(d) 75.

4. Cuba remained a territory of Spain until the Spanish-American War ended in what year?
(a) 1862.
(b) 1913.
(c) 1841.
(d) 1898.

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

Short Answer Questions

1. The Lehman Brothers bank problem in 2008 occurred because the banks weren't what, according to the author?

2. 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?

3. A market economy delegates resources to an area where they are what, according to the author in Chapter 1?

4. 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?

5. 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?

Short Essay Questions

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

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

3. How does the author describe the concept of maximizing profits in Chapter 1? What examples does he give?

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

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

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

7. What example does the author give for the negative effect of incentives in Chapter 2?

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

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

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

(see the answer keys)

This section contains 940 words (approx. 4 pages at 300 words per page) View a FREE sample