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This quiz consists of 5 multiple choice and 5 short answer questions through For Chapters 8-10.

Multiple Choice Questions

1. What refers to the degree to which a correct forecast of a system's state can be made either qualitatively or quantitatively?
(a) Recession.
(b) Index.
(c) Security.
(d) Predictability.

2. What is an assistance paid to a business or economic sector?
(a) Interest.
(b) Subsidy.
(c) Collateral.
(d) Derivative.

3. What refers to reasoning which constructs or evaluates deductive arguments?
(a) Critical reasoning.
(b) Constructive reasoning.
(c) Decisive reasoning.
(d) Deductive reasoning.

4. What contends that prices of publicly traded assets reflect all publicly available information?
(a) The uniform pay scale.
(b) Supply and demand.
(c) Adverse selection.
(d) The efficient market hypothesis.

5. When was Gary Becker born?
(a) 1956.
(b) 1922.
(c) 1945.
(d) 1930.

Short Answer Questions

1. What is a term used in economics that refers to a market process in which "bad" results occur when buyers and sellers have asymmetric information?

2. A market economy delegates resources to an area where they are what, according to the author in Chapter 1?

3. What is an investment position intended to offset potential losses that may be incurred by a companion investment?

4. What is a collective investment scheme that aims to replicate the movements of an index of a specific financial market regardless of market conditions?

5. In order to get a true understanding of an economy, there are nine factors one should consider along with the GDP according to the author in Chapter 9. What is the fourth?

(see the answer key)

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