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. Another threat for Friedman to the preservation and expansion of freedom is:

2. To what does Friedman equate competition?

3. In Chapter 10, The Distribution of Income, what was the chief characteristic of progress and development over the past century?

4. What example does Friedman use to demonstrate his views on employment practices?

5. What problem did Dicey write about in 1914?

Short Essay Questions

1. Why is Friedman against fair employment laws?

2. Do you think people should be forced to participate in social security?

3. What is Friedman's recommendation regarding an income tax?

4. What are two problems with monopolies for the liberal?

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

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

7. Why does Friedman reject "right to work" laws?

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. 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?

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

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 describes the current international trade arrangements of his time. In Friedman's day, the value of currency was tied to the gold standard. This arrangement was known as the Bretton Woods system. Analyze this currency system. What is it? How did it work? What were the advantages and disadvantages of it? How does it compare with what we have in the present day?

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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