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. According to the author in Chapter 3, it's up to whom to consider the broad social consequences of decisions In a market economy?
(a) Nonprofit organizations.
(b) Corporations.
(c) The government.
(d) Religious institutions.

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?
(a) $6,000.
(b) $2,500.
(c) $8,700.
(d) $1,000.

3. 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?
(a) Index fund.
(b) Foreign Exchange Market.
(c) Asset allocation.
(d) Mutual fund.

4. In economics and sociology, what refers to any factor that enables or motivates a particular course of action or counts as a reason for preferring one choice to the alternatives?
(a) Belief.
(b) Incentive.
(c) Punishment.
(d) Barrier.

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?
(a) 1988.
(b) 2000.
(c) 1997.
(d) 1993.

Short Answer Questions

1. Burton G. Malkiel is an American economist, most famous for what classic finance book?

2. In what political structure does the government set the price and decide what's on the shelves?

3. 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?

4. What is the capital of the Democratic People's Republic of Korea?

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

Short Essay Questions

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

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

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

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

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

6. How does the author of the Foreword describe Charles Wheelan's approach to explaining economics in "Naked Economics: Undressing the Dismal Science"?

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

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

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

10. 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?

(see the answer keys)

This section contains 1,020 words (approx. 4 pages at 300 words per page) View a FREE sample