LESE Fall 2007
BEE 1 through 9
IL&EA 1 through 10
Page 1 of 8
Quiz Sep 4:
Chapters BEE 1 & 2 and IL&EA 1
____________________ development meets the needs of the present
without compromising the ability of future generations to meet their own needs.
The Earth's ____________________ is the thin band surrounding the
surface of the Earth in which life can survive.
____________________ knowledge is subjective; whereas receipt of notice is
objective and reason to know is objective.
The Major Forces of Change concentrate around the year 1500 era (i.e., New
World, Gun Powder, Printing Press, Labor Shortage, and Rural) as well as around
the year 2000 era (i.e., ____________________ World, Weapons of Mass
Destruction [WMD], Computer, Labor Surplus, and Urban).
The Elements of Capitalism (i.e., private property, prices, markets, competition,
and ____________________ ) are the means of achieving the ends of the
Functions of Capitalism (i.e., embody self interest, measure self-interest,
coordinate self-interest, regulate self-interest, and facilitates P.P., P., M., & C.).
The government's two primary tools for facilitation are define rights (i.e.,
property, contracts, torts, and crimes) and to set ____________________
costs (e.g., strict liability).
In the History of Capitalism the current stage is ______________ Capitalism.
Efficiency as Ethics requires ____________________  Individualism via
profit maximization,  social good via cost minimization.
If a person should act then that person ____________________ act.
If a person chooses an action that is legal but also is unethical, then that person
might be action might be an action of ____________________.
Quiz Sep 11:
Chapters IL&ES 2 & 3 & 4
There are four economic inputs and four corresponding payments.
paired as follows:
is purchased with rent; labor is
purchased with wages; capital is purchased with ____________________;
and entrepreneurial ability is purchased with
Different persons have different risk preferences at different times and in
The difference in risk preference varies by the reward
magnitude (R) and by the risk magnitude (r).
A person who is risk seeking will
accept a risk when the magnitude of the reward is
than the risk; but typically will do so when the reward magnitude is
relative to the assets of the risk taker.
who is risk neutral only is willing to accept a risk when the reward magnitude is
to the risk magnitude, regardless of the magnitude
of the risk and regardless of the magnitude of the reward.
A person is risk averse
when the person only will accept a risk when the magnitude of the reward is
than the magnitude of the risk especially as risk
magnitude increases and the reward magnitude is small.