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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. Who designed the study along with Kahneman that involves two patients undergoing a painful colonoscopy?
(a) Christopher Hsee.
(b) Baruch Fischhoff.
(c) Don Redemeier.
(d) John List.

2. Who was the director of the CIA when intelligence learned that al-Qaeda may be planning a major attack on the U.S.?
(a) Baruch Fischhoff.
(b) Christopher Chabris.
(c) Malcolm Gladwell.
(d) George Tenet.

3. In discussing the stock market, the author states that if all the assets in a market are correctly priced, it leaves no scope for cleverness but it also does what?
(a) Creates definitive axioms.
(b) Creates an availability cascade.
(c) Protects fools from their own folly.
(d) Enacts executive control.

4. Who was concluded to achieve better investment results in "Boys Will Be Boys"?
(a) Bankers.
(b) Professors.
(c) Men.
(d) Women.

5. What label is given to the documented research showing a massive preference for selling winners rather than losers?
(a) Disposition effect.
(b) Narrative fallacy.
(c) Endowment effect.
(d) Loss aversion.

Short Answer Questions

1. The author describes a study conducted before President Nixon visited China and Russia. When was this?

2. Who wrote the article "The Robust Beauty of Improper Linear Models in Decision Making"?

3. In utility theory, the utilty of a gain is assessed by comparing what?

4. What part of the brain has a primary role as its threat center?

5. The author notes in Chapter 36 that "Caring for people often takes the form of concern for the quality of their stories, not for" what (744)?

Short Essay Questions

1. Why does the author credit Virginia Apgar with saving the lives of many infants?

2. What findings were published in "Money, Kisses, and Electric Shocks: On the Affective Psychology of Risk"?

3. What is a framing effect?

4. What is the initial gamble that Paul Samuelson famously asked a friend?

5. How does the author describe regret in economics?

6. What is an illusion of skill?

7. What is the endowment effect?

8. How does the author assert terrorism works in Chapter 30?

9. What is the principle of loss aversion?

10. What is broad framing? What is narrow framing?

(see the answer keys)

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