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 problem did Dicey write about in 1914?
(a) Education for all.
(b) Veteran's health benefits.
(c) Prenatal and infant care.
(d) Old age pensions.

2. What is the term for laws that forbid membership in a union a requirement for employment?
(a) Fair labor laws.
(b) Employment standards laws.
(c) Anti-union laws.
(d) Right to work laws.

3. Friedman would agree that racism is ______.
(a) Fixable with government intervention.
(b) Unavoidable.
(c) Expensive.
(d) Curable.

4. Regarding certification, what does Friedman stress increases sales?
(a) Stringent certification controls.
(b) Good products that maintain good reputations.
(c) Certificates of authenticity.
(d) Word of mouth advertising.

5. What is one example of a government supported monopoly?
(a) The sugar cane industry.
(b) The postal service.
(c) The coal industry.
(d) The auto industry.

Short Answer Questions

1. Friedman believes that ______ are no argument for nationalizing the provision of annuities.

2. Forming a list of who engages in what is known as ______.

3. What prefix were New Dealers commonly called?

4. What effect has Friedman observed that minimum wage laws have had on poverty?

5. What example does Friedman use to argue against the redistribution of wealth?

Short Essay Questions

1. What example does Friedman use to illustrate his point about direct cash payments to those below a certain income level?

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

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

4. What does Friedman say about public housing as a form of social welfare?

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

6. What are the three sources of monopoly?

7. If people were given cash instead of subsidies like food stamps, how might they would use it to get themselves out of poverty, and how might it be wasted?

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

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. Do you think doctors should be required to obtain a license?

(see the answer keys)

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