Capitalism and Freedom Test | Final Test - Medium

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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What effect has public housing had on the density of people per dwelling?
(a) Increased it.
(b) Maintained it.
(c) Spread it out.
(d) Reduced it.

2. Friedman hypothesizes that there has been a change in discrimination along with the rise of capitalism because ______.
(a) There has been an increase in the population of skilled workers.
(b) Contract arrangements replaced status as a source of wealth.
(c) Greed has overtaken all ethical values.
(d) Religion has argued equality on moral grounds.

3. If forced to choose between segregation or integration, which would Friedman choose?
(a) A combination.
(b) Neither.
(c) Segregation.
(d) Integration.

4. For Friedman, what is one major problem in interpreting the evidence on the distribution of income?
(a) Temporary vs. long run income status.
(b) Reliable empirical evidence.
(c) Lack of data.
(d) Defining poverty levels.

5. What is the relationship between capitalism and the fraction of income paid for capital in countries?
(a) Correlational.
(b) Direct.
(c) Perpendicular.
(d) Inverse.

Short Answer Questions

1. What does the Texas Railroad Commission enforce?

2. What type of society does Friedman believe is least materialistic?

3. One argument Friedman theorizes for Social Security is ______.

4. What does Friedman believe makes registration easier?

5. What is the term for making non-membership in a union a condition of employment?

Short Essay Questions

1. What does Friedman assert that capitalism has done for inequalities?

2. In Chapter 13, Friedman summarizes his examples. Which do you agree with?

3. According to Friedman, can a liberal be an egalitarian?

4. What recommendations would Friedman give to a president about an economic downturn?

5. What are the three forms of control discussed by Friedman in Chapter 9, Occupational Licensure?

6. What does Friedman believe are the effects of minimum wage laws?

7. Do you think people should be forced to participate in social security?

8. What is occupational licensure?

9. Friedman accepts the reasoning that justifies "governmental action to alleviate poverty" (p. 191). What two issues must be addressed in order for this to happen?

10. In Chapter 13, Friedman summarizes his examples. Which do you disagree with?

(see the answer keys)

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