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

Multiple Choice Questions

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

2. 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?
(a) Global financial system.
(b) Universal financial system.
(c) Integral financial system.
(d) Common financial system.

3. In finance, what is a derivative financial instrument that specifies a contract between two parties for a future transaction on an asset at a reference price?
(a) Option.
(b) Portfolio.
(c) Trade-off.
(d) Bond.

4. According to the author, the Hope Scholarships were a plan wherein students could borrow money for college and pay back their loans after they graduated using what?
(a) Regular debit payments.
(b) A percentage of their annual income.
(c) Government bonds.
(d) Interest free payments.

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

Short Answer Questions

1. According to the author in Chapter 7, the basic set of rules and investor should follow is to do what?

2. Ross Perot ran for President of the United States in what year?

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

4. What is the capital of the Republic of Cuba?

5. What is a political thesis of Kim Il-sung which says that the Korean masses are the masters of the country's development?

Short Essay Questions

1. 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?

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

3. What are the ramifications of decisions made in the world of finance and legislation, according to the author in the Introduction?

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

5. What stereotypical scene does the author depict of an economics student in the Introduction?

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

7. What examples does the author give for the uninformed relaying false information in the Introduction?

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

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

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

(see the answer keys)

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