Mid-Book Test - Hard
|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. Which term describes the purpose of federal spending?
2. Friedman's evidence suggests that for every $100 of government spending, a certain amount is added to income. How much?
3. How are decisions, for Friedman, made where unanimity is a costly way of making decisions?
4. Which of the following can be justified by Friedman for government interventions?
5. In Friedman's analysis, what century is the historical exception to most men living in tyranny, servitude, and misery?
Short Essay Questions
1. What examples does Friedman give of when the Federal Reserve System mismanaged the money supply?
2. What are two problems with monopolies for the liberal?
3. 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?
4. What does Friedman assert that capitalism has done for inequalities?
5. Explain the paternalistic argument that Friedman describes for government involvement in education.
6. What recommendations would Friedman give to a president about an economic downturn?
7. According to Friedman what is the role of government?
8. What does Friedman believe to be the cause of the Great Depression?
9. What is Friedman's definition of political freedom? Of economic freedom?
10. According to Friedman, do monopolies have any sort of "social responsibility"?
Essay Topic 1
Friedman discusses the role of government in education. He says that the government can require education because a democratic society cannot exist without a literate and informed population. Focusing on compulsory education, analyze the role of government in education.
Essay Topic 2
Friedman uses two reasons to justify government intervention: the neighborhood effect and paternalism. Analyze these reasons and determine whether they are sufficient justifications for government intervention.
Essay Topic 3
What is Friedman's stance on social welfare? Using examples from the text, explain his position and then advocate or rebut his position.
This section contains 630 words
(approx. 3 pages at 300 words per page)