Common Sense Economics Exam documentation 01/07/2013 All exam questions are drawn from the "B" pools.

There are generally fewer questions in the A pools so there will be greater variety for exams drawn from the "B" pools.
Name Exam 1: 40 questions, 2 points each CSE Mod1B Incentives CSE Mod1B Marginalism CSE Mod1B Opportunity Costs CSE Mod1B Scarcity CSE Mod2B Demand Supply CSE Mod2B Equilibrium CSE Mod2B Gains from trade CSE Mod2B Transaction costs CSE Mod3B Helping others and receipt of income CSE Mod3B Jobs versus the creation of wealth CSE Mod3B Profits and loss CSE Mod4B Market prices and the invisible hand CSE Mod4B Secondary effects and unintended consequences CSE Mod4B Sources of economic progress Exam 2: 40 questions, 2.5 points each, 25 "new", 15 "old" CSE Mod1B Incentives CSE Mod1B Marginalism CSE Mod1B Opportunity Costs CSE Mod1B Scarcity CSE Mod2B Demand Supply CSE Mod2B Equilibrium CSE Mod2B Gains from trade CSE Mod2B Transaction costs CSE Mod3B Helping others and receipt of income CSE Mod3B Jobs versus the creation of wealth CSE Mod3B Profits and loss CSE Mod4B Market prices and the invisible hand CSE Mod4B Secondary effects and unintended consequences CSE Mod4B Sources of economic progress CSE Mod5B Competitive process CSE Mod5B Legal system and private ownership CSE Mod5B Private property and incentives CSE Mod6B Capital markets: wealth-creating versus inefficient projects CSE Mod6B Monetary policy and inflation CSE Mod6B Regulation and gains from trade CSE Mod7B Economic freedom, growth and income CSE Mod7B Economics, politics, and trade restrictions CSE Mod7B Gains from international trade CSE Mod7B Taxes, incentives, and productive activity # Questions on exam 3 3 3 3 3 3 3 3 2 2 3 3 3 3 # Questions in pool 12 10 12 11 10 10 10 15 8 8 15 10 12 12

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Exam 3: 40 questions, 3 points each, 25 "new", 15 "old" CSE Mod1B Incentives CSE Mod1B Marginalism CSE Mod1B Opportunity Costs CSE Mod1B Scarcity CSE Mod2B Demand Supply CSE Mod2B Equilibrium CSE Mod2B Gains from trade CSE Mod2B Transaction costs CSE Mod3B Helping others and receipt of income CSE Mod3B Jobs versus the creation of wealth CSE Mod3B Profits and loss CSE Mod4B Market prices and the invisible hand CSE Mod4B Secondary effects and unintended consequences CSE Mod4B Sources of economic progress CSE Mod5B Competitive process CSE Mod5B Legal system and private ownership CSE Mod5B Private property and incentives CSE Mod6B Capital markets: wealth-creating versus inefficient projects CSE Mod6B Monetary policy and inflation CSE Mod6B Regulation and gains from trade CSE Mod7B Economic freedom, growth and income CSE Mod7B Economics, politics, and trade restrictions CSE Mod7B Gains from international trade CSE Mod7B Taxes, incentives, and productive activity CSE Mod8B The opportunity cost of government CSE Mod8B Political versus the market process CSE Mod8B Protective and productive roles of government CSE Mod9B Political incentives and short-sightedness CSE Mod9B Special interest and political allocation CSE Mod10B Central planning, politics, and resource allocation CSE Mod10B Transfers, incentives, and the "welfare" of recipients CSE Mod10B The unintended consequences of transfers and subsidies CSE Mod11B Competition among governments, incentives, and resource allocation CSE Mod11B Constitutional rules and sound economics

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Exam 4: 50 questions, 4 points each, 30 "new", 20 "old" CSE Mod1B Incentives CSE Mod1B Marginalism CSE Mod1B Opportunity Costs CSE Mod1B Scarcity CSE Mod2B Demand Supply CSE Mod2B Equilibrium CSE Mod2B Gains from trade CSE Mod2B Transaction costs CSE Mod3B Helping others and receipt of income CSE Mod3B Jobs versus the creation of wealth CSE Mod3B Profits and loss CSE Mod4B Market prices and the invisible hand CSE Mod4B Secondary effects and unintended consequences CSE Mod4B Sources of economic progress CSE Mod5B Competitive process CSE Mod5B Legal system and private ownership CSE Mod5B Private property and incentives CSE Mod6B Capital markets: wealth-creating versus inefficient projects CSE Mod6B Monetary policy and inflation CSE Mod6B Regulation and gains from trade CSE Mod7B Economic freedom, growth and income CSE Mod7B Economics, politics, and trade restrictions CSE Mod7B Gains from international trade CSE Mod7B Taxes, incentives, and productive activity CSE Mod8B The opportunity cost of government CSE Mod8B Political versus the market process CSE Mod8B Protective and productive roles of government CSE Mod9B Political incentives and short-sightedness CSE Mod9B Special interest and political allocation CSE Mod10B Central planning, politics, and resource allocation CSE Mod10B Transfers, incentives, and the "welfare" of recipients CSE Mod10B The unintended consequences of transfers and subsidies CSE Mod11B Competition among governments, incentives, and resource allocation CSE Mod11B Constitutional rules and sound economics CSE Mod12B Budgeting and getting more out of your income CSE Mod12B Comparative advantage and discovery of career opportunities CSE Mod12B Entrepreneurship and personal success CSE Mod12B Introduction CSE Mod13B Dangers of debt and credit card use CSE Mod13B Strategic saving: planning for a "rainy day" CSE Mod13B Sensible spending: used versus new CSE Mod14B Diversification and reducing investment risk CSE Mod14B Index versus managed equity funds CSE Mod14B The power of compound interest CSE Mod14B Random walk theory and stock prices CSE Mod14B Risk and return: stocks versus bonds CSE Mod15B Portfolio adjustments and phases of life CSE Mod15B Teach others sound financial principles

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