Capitalism and Freedom Test | Final 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. What industry does Friedman use to explain his views on monopoly in labor?

2. What problem did Dicey write about in 1914?

3. What term describes the deliberate setting of prices through an agreement by firms?

4. How many problems with monopolies does Friedman describe?

5. Where does Friedman live?

Short Essay Questions

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

2. What does Friedman believe are the effects of farm price supports?

3. Do you agree or disagree with Friedman's flat tax proposal?

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

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

6. According to Friedman, do monopolies have any sort of "social responsibility"?

7. Who are the biggest advocates of occupational licensure that Friedman describes?

8. 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?

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

According to the author, government does have a role in a free society. Analyze Friedman's view of the appropriate role of government.

Essay Topic 2

Friedman gives many historical examples to illustrate his point about the relationship between economic and political freedom. Examine these historical examples and decide whether they prove Friedman's thesis.

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.

(see the answer keys)

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