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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. What, according to the author, motivates talented teachers to leave to go onto other professions?
(a) Supply and demand.
(b) The uniform pay scale.
(c) Capitalism.
(d) Legislation.

2. In Chapter 6, the author discusses poverty and income equality, using the example of what billionaire?
(a) Bill Gates.
(b) Donald Trump.
(c) Ted Turner.
(d) Fidel Castro.

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

4. OPEC has maintained its headquarters where since 1965?
(a) Havana.
(b) Sydney.
(c) Vienna.
(d) Toronto.

5. What are negative results which occur while trying to achieve a goal for the common good?
(a) Ghost incentives.
(b) Unknown incentives.
(c) Perverse incentives.
(d) Abstract incentives.

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

3. Who introduced the Hope credit?

4. What is generally a fungible, negotiable financial instrument representing financial value?

5. What is the third simple need of financial markets, as discussed in Chapter 7?

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 is the first of the basic needs the author boils down for investment markets in Chapter 7?

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

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

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

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

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

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

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

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

(see the answer keys)

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