|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Three levels of control are licensing, registration, and ______.
2. For Friedman, what is one major problem in interpreting the evidence on the distribution of income?
(a) Lack of data.
(b) Reliable empirical evidence.
(c) Temporary vs. long run income status.
(d) Defining poverty levels.
3. Regarding certification, what does Friedman stress increases sales?
(a) Word of mouth advertising.
(b) Stringent certification controls.
(c) Certificates of authenticity.
(d) Good products that maintain good reputations.
4. At the time of the book's publication, there was a tendency to regard government intervention as ______.
5. What does FEPC stand for?
(a) Fair Employment Practice Commission.
(b) Finding Education and People Cooperatively.
(c) Fixing Economic Policy for Capitalism.
(d) Future Exercises for Preventing Catastrophes.
6. Friedman would agree that racism is ______.
(c) Fixable with government intervention.
7. In Chapter 10, The Distribution of Income, what was the chief characteristic of progress and development over the past century?
(a) Advances in entertainment.
(b) Increae in leisure time.
(c) Advances in technology.
(d) Advances in education.
8. Who does Friedman think can abuse licensure?
(a) Those applying for the licenses.
(b) An elite few in power.
(c) Special interest groups.
(d) Educational institutions.
9. Labor unions are referred to as ______.
(a) Monopoly in government.
(b) Produced monopoly.
(c) Monopoly in industry.
(d) Monopoly in labor.
10. Which of the following is not an example of social welfare?
(a) Public housing.
(b) Occupational licensure.
(c) Minimum wage laws.
11. For Friedman, what is the main argument for licensure?
12. Forming a list of who engages in what is known as ______.
13. Friedman gives the following examples of the negative effects of government intervention except ______.
(a) Regulation of the railroads.
(b) Housing programs.
(c) Farm subsidies.
(d) Religious freedom acts.
14. What is the major reason Friedman asserts why government intervention has had the opposite of the intended effects?
(a) A wealthy few have made the majority of the decisions for the minority.
(b) People attempt to promote their own interests.
(c) People in power only seek political gains.
(d) People do not abide by the rules of the government.
15. What has been more potent for progress than the visible hand for retrogression according to Friedman?
(a) Invisible hand.
(b) Hidden hand.
(c) None of the answers is correct.
(d) Transparent hand.
Short Answer Questions
1. What industry sector is most prevalent in monopoly?
2. In what decades did intellectuals in the United States consider capitalism to be defective?
3. What effect has Friedman observed that public housing has had on juvenile delinquency?
4. What is one factor that Friedman believes has reduced inequality?
5. What is the term for making non-membership in a union a condition of employment?
This section contains 455 words
(approx. 2 pages at 300 words per page)