RMI EXAM 1 QUESTIONS WITH
COMPLETE SOLUTIONS!!
1 of 56
Term
In layman's terms, what does it mean when we say "the utility is
increasing at a decreasing rate?"
A. When I have less wealth, each additional dollar means less to me
B.When I have more wealth, each additional dollar means less to me
C. I am indifferent between less wealth and more
wealth D.All of the above
E. None of the above
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, When I have more wealth,
each additional dollar means Maximum likelihood principle
less to me
"...that interferes with obtaining
goals" Internal risk reduction
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2 of 56
Term
According to "Balancing Liberty and the Pursuit of Well-Being" which
of the following are true statements:
I.The free market fails to sufficiently protect consumers
II.The government could focus more on externalities than
consumers if everyone exhibited rational behavior
III. Governments need to balance competing goals
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Infrastructure I, II, III
I & II I, II, & III
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,3 of 56
Term
According to the reading "Innovation Risk: How to Make Smarter
Decisions", which of the following is NOT one of the five rules of
thumb to minimize risk:
A. Recognize that you need a model
B. Understand mental models
C.Expect the unexpected
D.Check the infrastructure
E. All of the above are one of the rules of thumb to minimize risk
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I, II, III Understand mental models
None of the above Infrastructure
Don't know?
4 of 56
Term
According to the reading "Innovation Risk: How to Make Smarter
Decisions", innovation changes the trade-off between risk and
_________.
A. Cost
, B.Risk Relatives
C.Regulation
D. All of the above
E. None of the above
Give this one a try later!
Incomplete Standard deviation
Infrastructure None of the above
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5 of 56
Term
In module 1 we discussed how you measure risk. When measuring
risk, frequency is synonymous with:
A. Impact
B. Likelihoo
d
C.Severity
D.Expected value
E. Standard deviation
Give this one a try later!
Survival Likelihood
COMPLETE SOLUTIONS!!
1 of 56
Term
In layman's terms, what does it mean when we say "the utility is
increasing at a decreasing rate?"
A. When I have less wealth, each additional dollar means less to me
B.When I have more wealth, each additional dollar means less to me
C. I am indifferent between less wealth and more
wealth D.All of the above
E. None of the above
Give this one a try later!
, When I have more wealth,
each additional dollar means Maximum likelihood principle
less to me
"...that interferes with obtaining
goals" Internal risk reduction
Don't know?
2 of 56
Term
According to "Balancing Liberty and the Pursuit of Well-Being" which
of the following are true statements:
I.The free market fails to sufficiently protect consumers
II.The government could focus more on externalities than
consumers if everyone exhibited rational behavior
III. Governments need to balance competing goals
Give this one a try later!
Infrastructure I, II, III
I & II I, II, & III
Don't know?
,3 of 56
Term
According to the reading "Innovation Risk: How to Make Smarter
Decisions", which of the following is NOT one of the five rules of
thumb to minimize risk:
A. Recognize that you need a model
B. Understand mental models
C.Expect the unexpected
D.Check the infrastructure
E. All of the above are one of the rules of thumb to minimize risk
Give this one a try later!
I, II, III Understand mental models
None of the above Infrastructure
Don't know?
4 of 56
Term
According to the reading "Innovation Risk: How to Make Smarter
Decisions", innovation changes the trade-off between risk and
_________.
A. Cost
, B.Risk Relatives
C.Regulation
D. All of the above
E. None of the above
Give this one a try later!
Incomplete Standard deviation
Infrastructure None of the above
Don't know?
5 of 56
Term
In module 1 we discussed how you measure risk. When measuring
risk, frequency is synonymous with:
A. Impact
B. Likelihoo
d
C.Severity
D.Expected value
E. Standard deviation
Give this one a try later!
Survival Likelihood
