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 believes that one governmental action that is justifiable is to set a ______ education level.

2. What is one way Friedman believes some people criticize markets?

3. Friedman asserts that government restriction centralizes ______.

4. For Friedman, where is the best place for power to be held?

5. One solution Friedman proposes is to give parents ______ for schooling.

Short Essay Questions

1. What is the modern day definition of liberalism?

2. Where does Friedman believe power in government should be located?

3. How does Friedman explain government's role in a free society?

4. Does Friedman believe that most societies have been free or not free?

5. What is Friedman's definition of political freedom? Of economic freedom?

6. Why does Friedman believe government power should be limited?

7. What is fiscal policy?

8. According to Friedman what is the role of government?

9. Explain Friedman's voucher proposal.

10. What is meant when Friedman states "Government as rule-maker and umpire"?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Friedman theorizes that actions taken by the government to reduce competition, restrict free choice and raise prices have a negative effect on society. Analyze the various forms of monopolies and what the government's role should be.

Essay Topic 2

What is Friedman's stance on social welfare? Using examples from the text, explain his position and then advocate or rebut his position.

Essay Topic 3

After describing the current international trade situation regarding government regulation of exchange rates and the price of gold, Friedman goes on to explain his free market solution. What is Friedman's solution? What are the positives and negatives with it? In your opinion, do you think it would work?

(see the answer keys)

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