QUESTION .1

What kinds of decisions are decision matrixeslesshelpful for making?

1.Decisions for which there is a lot of objective information

2. Decisions that must be made quickly

3.Decisions regarding ethics, beauty or harmony

4. Decisions which you have plenty of time to deliberate on

QUESTION .2

What is economics?

1.Study of production, distribution and consumption

2.Study of how to save money

3.Study of investing and borrowing

4.Study of the financial decisions of consumers and firms

QUESTION .3

1. Create a sound syllogism by filling in the missing premise:
2. All men are mortal
3. ___________________

a. Socrates was born of woman.

b. Socrates is a man.

c.Plato is mortal.

d.The oracle predicts Socrates shall die.

QUESTION 4

1. This argument is sound:

If taxes are lowered, I will have more money to spend.

I have more money to spend.

Therefore, taxes must have been lowered.

a. True

b. False

QUESTION 5

Why is risk different from uncertainty?

a.Risk can cause losses; uncertainty does not

b.Risk is qualitative and uncertainty is quantitative

c.Risk is harder to manage because it cannot be insured

d.Risk is easier to model because the distribution of outcomes is known

QUESTION 6

Quantitative (numbers-based) decision tools like decision matrixes and decision trees are most closely associate with which ethical tradition?

a.Empathetic/Intuitive

b.Deontology (Rules-based)

c.Consequentialism

d.Micro-economics

Question 7

A helpful Excel function for Monte Carlo simulations is...?

a,MC(..)

b. FORECAST(..)

c. SIMULATE(..)

d. RANDBETWEEN(..)

QUESTION 8

1. You are offered the following bet: Pay $20. Roll a six sided die. If you roll a six, win $200, else get nothing. According to classical economics, do you play?

a.No. Most people are risk-averse and won't take the risk.

• b. No. You are more likely to lose money (5/6 of the time) than win money.
• c.Yes. The expected value is $200/6=$33, which is more than the $20 to play.
• d.Yes. Winning will create a $180 profit!