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This quiz consists of 5 multiple choice and 5 short answer questions through Chapters 4-7.

Multiple Choice Questions

1. Gary Becker figured that the stock of skills, education, training and an individual's health constitutes about what percent of a modern economy's wealth?
(a) 60.
(b) 42.
(c) 35.
(d) 75.

2. According to the author in Chapter 1, companies want to profit, and consumers want what?
(a) Safety.
(b) Satisfaction.
(c) Education.
(d) Results.

3. When did Ross Perot found Electronic Data Systems?
(a) 1962.
(b) 1977.
(c) 1955.
(d) 1971.

4. The Lehman Brothers bank problem in 2008 occurred because the banks weren't what, according to the author?
(a) Analyzing risk.
(b) Paying out interest.
(c) Keeping enough money on hand.
(d) Using their own money.

5. What is an investment position intended to offset potential losses that may be incurred by a companion investment?
(a) Bond.
(b) Hedge.
(c) Deductible.
(d) Futures contract.

Short Answer Questions

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

2. With uniform rules and regulations, the cost of doing business in the private sector is what, according to the author in Chapter 3?

3. What contends that prices of publicly traded assets reflect all publicly available information?

4. According to the author, insurance companies want to save money while doctors want to help patients and avoid what?

5. 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?

(see the answer key)

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