Unit Test — Unit test Answers

Which of these affect real investment value? Check all that apply.

Read this excerpt from Levitt and Dubner’s Freakonomics. The incentive scheme that rules sumo is intricate and extraordinarily powerful. Each wrestler maintains a ranking that affects every slice of life; how much money he makes, how large an entourage he carries, how much he gets to eat, sleep, and otherwise take advantage of his success. The sixty-six highest-ranked wrestlers in Japan, comprising the makuuchi and juryo divisions, make up the sumo elite. A wrestler near the top of this elite pyramid may earn millions and is treated like royalty. Any wrestler in the top forty earns at least $170,000 a year. The seventieth-ranked wrestler in Japan, meanwhile, earns only $15,000 a year. Life isn’t very sweet outside the elite. Low-ranked wrestlers must tend to their superiors, preparing their meals and cleaning their quarters and even soaping up their hardest-to-reach body parts. So ranking is everything.A wrestler’s ranking is based on his performance in the elite tournaments that are held six times a year. Each wrestler has fifteen bouts per tournament, one per day over fifteen consecutive days. If he finishes the tournament with a winning record (eight victories or better), his ranking will rise. If he has a losing record, his ranking falls. If it falls far enough, he is booted from the elite rank entirely. The eighth victory in any tournament is therefore critical, the difference between promotion and demotion; it is roughly four times as valuable in the rankings as the typical victory.Based on the excerpt, which statement provides the best example of incentive for a sumo wrestler to cheat?

How does time generally affect the risk of an investment?

Read the following excerpt from E. O. Wilson’s “The Environmental Ethic.”It is also easy to overlook the services that ecosystems provide humanity. They enrich the soil and create the very air we breathe. Without these amenities, the remaining tenure of the human race would be nasty and brief. The life-sustaining matrix is built of green plants with legions of microorganisms and mostly small, obscure animals—in other words, weeds and bugs. Such organisms support the world with efficiency because they are so diverse, allowing them to divide labor and swarm over every square meter of the earth’s surface. They run the world precisely as we would wish it to be run, because humanity evolved within living communities and our bodily functions are finely adjusted to the idiosyncratic environment already created. The author tries to persuade the reader to agree with his claim about the importance of ecosystems by

What is the W-4 form used for?

This image shows a receipt from a shoe purchase.

What provides financial support to workers who are retired or have disabilities?

Read this excerpt from Levitt and Dubner’s Freakonomics. The incentive scheme that rules sumo is intricate and extraordinarily powerful. Each wrestler maintains a ranking that affects every slice of life; how much money he makes, how large an entourage he carries, how much he gets to eat, sleep, and otherwise take advantage of his success. The sixty-six highest-ranked wrestlers in Japan, comprising the makuuchi and juryo divisions, make up the sumo elite. A wrestler near the top of this elite pyramid may earn millions and is treated like royalty. Any wrestler in the top forty earns at least $170,000 a year. The seventieth-ranked wrestler in Japan, meanwhile, earns only $15,000 a year. Life isn’t very sweet outside the elite. Low-ranked wrestlers must tend to their superiors, preparing their meals and cleaning their quarters and even soaping up their hardest-to-reach body parts. So ranking is everything.A wrestler’s ranking is based on his performance in the elite tournaments that are held six times a year. Each wrestler has fifteen bouts per tournament, one per day over fifteen consecutive days. If he finishes the tournament with a winning record (eight victories or better), his ranking will rise. If he has a losing record, his ranking falls. If it falls far enough, he is booted from the elite rank entirely. The eighth victory in any tournament is therefore critical, the difference between promotion and demotion; it is roughly four times as valuable in the rankings as the typical victory.Based on the excerpt, which of the following statements best summarizes the incentive system that ranks sumo wrestlers?

What common misconceptions about paying taxes exist? Check all that apply.

Read the following excerpt from E. O. Wilson’s “The Environmental Ethic.”Species are disappearing at an accelerating rate through human action, primarily habitat destruction but also pollution and the introduction of exotic species into residual natural environments. I have said that a fifth or more of the species of plants and animals could vanish or be doomed to early extinction by the year 2020 unless better efforts are made to save them. . . . As the last forests are felled [destroyed] in forest strongholds like the Philippines and Ecuador, the decline of species will accelerate even more. In the world as a whole, extinction rates are already hundreds or thousands of times higher than before the coming of man. They cannot be balanced by new evolution in any period of time that has meaning for the human race.Why should we care? What difference does it make if some species are extinguished, if even half of all the species on earth disappear? Let me count the ways. New sources of scientific information will be lost. Vast potential biological wealth will be destroyed. Still undeveloped medicines, crops, pharmaceuticals, timber, fibers, pulp, soil-restoring vegetation, petroleum substitutes, and other products and amenities will never come to light. Based on the excerpt, which statement best summarizes the author’s beliefs about the disappearing species?

Changes in monetary policy occur when the Federal Reserve

When discussing a loan, interest rates are expressed as a percentage of the

This pie chart shows the sources of federal tax revenue.

Revenue from property taxes is used to fund

Many checking accounts offer multiple ways of accessing money in addition to checks. Which of these can be used to access money in a checking account?

Two years ago, Elena purchased a condo. She has made some improvements on it, which increased the value of the property. Property tax in her community is 1.25%.This table shows the value of Elena’s condo over the last three years.Value of property at purchase Value of property last yearValue of property today$187,200$188,550$190,000

Read the following excerpt from Levitt and Dubner’s Freakonomics.There is a tale, “The Ring of Gyges,” that Feldman sometimes tells his economist friends. It comes from Plato’s Republic. A student named Glaucon offered the story in response to a lesson by Socrates—who, like Adam Smith, argued that people are generally good even without enforcement. Glaucon, like Feldman’s economist friends, disagreed. He told of a shepherd named Gyges who stumbled upon a secret cavern with a corpse inside that wore a ring. When Gyges put on the ring, he found that it made him invisible. With no one able to monitor his behavior, Gyges proceeded to do woeful things—seduce the queen, murder the king, and so on. Glaucon’s story posed a moral question: could any man resist the temptation of evil if he knew his acts could not be witnessed? Glaucon seemed to think the answer was no. The excerpt serves as which of the following in relation to the authors’ argument?

Interest rates generally reflect

What is the definition of risk?

Read the following excerpt from Levitt and Dubner’s Freakonomics.Despite all the attention paid to rogue companies like Enron, academics know very little about the practicalities of white-collar crime. The reason? There are no good data. A key fact of white-collar crime is that we hear about only the very slim fraction of people who are caught cheating. Most embezzlers lead quiet and theoretically happy lives; employees who steal company property are rarely detected.With street crime, meanwhile, that is not the case. A mugging or a burglary or a murder is usually tallied whether or not the criminal is caught. A street crime has a victim, who typically reports the crime to the police, who generate data, which in turn generate thousands of academic papers by criminologists, sociologists, and economists. But white-collar crime presents no obvious victim. From who, exactly, did the masters of Enron steal? And how can you measure something if you don’t know to whom it happened, or with what frequency, or in what magnitude?The excerpt helps the authors support their conclusion by