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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. 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?
2. What is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames?
3. What rhetorical question do economists ask, according to the author in Chapter 1?
4. In economics, what is a good that is non-rival and non-excludable?
5. According to the author, insurance companies want to save money while doctors want to help patients and avoid what?
Short Essay Questions
1. How does the author describe the concept of maximizing profits in Chapter 1? What examples does he give?
2. What are the ramifications of decisions made in the world of finance and legislation, according to the author in the Introduction?
3. What is the basic set of rules put forth by the author for those looking to invest in Chapter 7? How are risk and reward described?
4. How is adverse selection described in the example of Hope Scholarships in Chapter 4?
5. How does the author of the Foreword describe Charles Wheelan's approach to explaining economics in "Naked Economics: Undressing the Dismal Science"?
6. What are the second through fourth of the basic needs the author boils down for investment markets in Chapter 7?
7. How is information a problem in the healthcare and insurance industries, as discussed in Chapter 5?
8. Discuss the importance of information in economics. How does the author address the issue of information in Chapter 4?
9. What is the first of the basic needs the author boils down for investment markets in Chapter 7?
10. Who wrote the book's Foreword? What does this individual say regarding the perception of economics and economists?
Essay Topics
Write an essay for ONE of the following topics:
Essay Topic 1
Describe and analyze the author's concepts of productivity, education, and standard of living in Chapter 6. How does productivity relate to human capital? How does education relate to human capital and standard of living? How has education changed in the past 20 years?
Essay Topic 2
Define and discuss stock averages and index funds. What are mutual funds and how are they implemented in an investment strategy? What are ways suggested by the author to minimize risk when investing? What is "insider trading" and how does it impact the economy as a whole?
Essay Topic 3
Discuss and analyze the author's Introduction to the book. What role does Wheelan propose economics and finance has in everyday life? What, according to the author, led to the problems with Lehman Brothers? What examples does the author use for politicians using false information?
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This section contains 1,003 words (approx. 4 pages at 300 words per page) |
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