Chapter 40 — Quiz

This is the last quiz. It tests synthesis across the entire book.

Q1. The most important concept in this book is: a) GDP b) Opportunity cost c) The federal funds rate d) Market equilibrium

Q2. The economic way of thinking is best described as: a) A truth b) A lens that reveals tradeoffs, incentives, and unintended consequences c) A political ideology d) A set of equations

Q3. When evaluating a policy, you should ask: a) Whether it sounds good b) Whether the positive claims are supported by evidence AND which values the normative claims assume c) Whether experts agree d) Whether the president supports it

Q4. FRED is: a) A person b) The Federal Reserve Economic Data platform — your most useful free data tool c) A textbook d) An interest rate

Q5. The IGM Forum tells you: a) What politicians think b) What the public thinks c) What leading economists think about contested questions d) Nothing useful

Q6. The single most useful personal-finance takeaway from this book is: a) Day-trade stocks b) Save early, diversify, keep fees low, buy index funds c) Time the market d) Buy gold

Q7. "Economics is not about the economy" means: a) Economics is useless b) Economics is about how to think about tradeoffs, incentives, and unintended consequences — skills that apply everywhere c) The economy doesn't exist d) Only math matters

SA1. Name the four foundational ideas from Chapter 1. SA2. What is the most important thing you learned in this course?

TF1. Economic thinking should be the only way you evaluate decisions. (T/F) TF2. You can fact-check most economic claims using FRED. (T/F) TF3. The capstone project asks you to analyze a real city using everything you've learned. (T/F)

Congratulations on finishing the book.