|Name: _________________________||Period: ___________________|
This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.
Short Answer Questions
1. What is the term for making non-membership in a union a condition of employment?
2. What is the relationship between capitalism and the fraction of income paid for capital in countries?
3. What has capitalism done for discrimination according to Friedman?
4. What does Friedman advocate the abolition of in Chapter 10, The Distribution of Income?
5. Friedman believes that ______ are no argument for nationalizing the provision of annuities.
Short Essay Questions
1. In Chapter 13, Friedman summarizes his examples. Which do you agree with?
2. What is the progressive income tax?
3. What recommendations would Friedman give to a president about an economic downturn?
4. What does Friedman assert that capitalism has done for inequalities?
5. According to Friedman, is there any justification for government intervention when it comes to distributing wealth?
6. Do you think people should be forced to participate in social security?
7. What does Friedman say about public housing as a form of social welfare?
8. Why is Friedman against fair employment laws?
9. What is Friedman's recommendation regarding an income tax?
10. Where do you stand: are you on the liberal free market side or more on the government intervention side? Why?
Write an essay for ONE of the following topics:
Essay Topic 1
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 2
Friedman disagrees with the multiplier effect, a Keynesian theory, reasoning for government spending. Analyze the multiplier effect and examine the man who propagates the theory, John Maynard Keynes.
Essay Topic 3
What is the balance wheel theory of intervention? What is Friedman's view on it?
This section contains 604 words
(approx. 3 pages at 300 words per page)