Capitalism and Freedom Test | Mid-Book Test - Hard

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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. Friedman points out one idea that is often forgotten is that political and economic institutions have been ______.

2. In the market described by Friedman, exchanges between households are ______.

3. Friedman believes that all of the following are appropriate for fiscal policy except ______.

4. Friedman theorizes that in extreme cases where parents don't pay for schooling, the government could provide a ______.

5. Friedman uses the example of selling ______ to demonstrate a true global economy.

Short Essay Questions

1. What are the three sources of monopoly?

2. What is meant by "paternalistic grounds"?

3. What examples does Friedman give of appropriate roles of government in a free society?

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

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

6. According to Friedman, is there any justification for government intervention when it comes to distributing wealth?

7. What is occupational licensure?

8. 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?

9. What does Friedman think of the remark, "Ask not what your country can do for you, ask what you can do for your country"?

10. What is the modern day definition of liberalism?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Friedman articulates one solution for government involvement in education: vouchers. Analyze Friedman's voucher proposal to the current day voucher proposal and decide whether this would be a good solution to improve education.

Essay Topic 2

Friedman argues against licensure in general. Examine Friedman's arguments against this topic and critique his examples.

Essay Topic 3

What is the balance wheel theory of intervention? What is Friedman's view on it?

(see the answer keys)

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