Multiple Choice questions chapter 13 PDF

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In this assignment, we were required to create multiple choice questions with an answer from the reading that was assigned to us that week. These questions come from chapter 13 of Thomas Sowell's "Basic Economics." Thad usually made his tests with the questions that we created, he always picked th...

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1. What are two things that investments involve? A. Cash and Risk B. Time and Patience *C. Risk and tangible things that are invested D. None of the above

2. What are some ways of dealing with risk? A. Speculation B. Insurance C. Issuance of stocks and bonds *D. All of the above

3. What do low interest rates reduce the incentive to do? *A. Incentive to save B. Incentive to spend C. Incentive to invest D. Incentive to spend and invest

4. What do high interest rates lead to people doing with their money? A. Keep the money at home under a mattress *B. Save their money C. Spend their money D. Put their money in a bank

5. What are short-term loans to low-income people often called? A. Cash loans *B. Payday loans C. Spending money

D. War bonds

6. What would happen to a business if they had too little or too large of an inventory? A. They would make money B. Nothing, they would just have too little or too much of something *C. They would lose money D. The business would gain a lot of profit

7. What will a company with too small of an inventory? *A. They would lose customers because they do not have the items want for sale and they will turn to more dependable suppliers in the future. B. They will gain customers because they will respect the companies attempt to save resources C. Customers will assume the product no longer exists since the store does not have any more in stock D. None of the above

8. What best describes the present value of an object? A. The value we place on all of our objects one they are bought off of the shelf B. Objects do not have a present value since the value of an object always fluctuates C. The current value an object has at this moment in time *D. Anticipated future benefits, added up and discounted for the fact that the object will be delayed...