I finished writing the ECO 5315 midterm exam today. In my opinion, this exam strikes a good balance between theory and quantitative analysis; if anything, it is marginally skewed in favor of conceptual (theory) questions. The test consists of 33 multiple-choice questions, each of which is worth 3 points. There are also 2 extra-credit problems worth 3 points each. Consequently, the maximum number of points possible is 106 (consisting of 1 point for showing up plus 99 points possible for questions 1-33 plus 6 points for extra credit questions 34-35). As I noted in my previous blog entry, I don’t expect that many students will find the time factor per se to be all that critical in terms of being able to complete the exam. However, I am also mindful of Parkinson’s law, i.e., that work expands so as to fill the time available for its completion!
Looking forward (beyond Thursday evening’s midterm exam), we’re obviously on the “home stretch” for the course. We’ll also shift to meeting on Monday evenings. This coming Monday I plan to cover the game theory chapter (chapter 11). After the game theory chapter, we’ll tackle chapters 13-15 which address how to assess, measure, price, share, and manage risk from personal as well as corporate perspectives. Thus, we’ll study and think about how risk influences decision-making as well as the design of contracts and organizations.