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 two professions does Friedman compare to support his claim on the harm it does when people are unable to find mutually acceptable contracts?

2. One argument Friedman theorizes for Social Security is ______.

3. What problem did Dicey write about in 1914?

4. What is one factor that Friedman believes has reduced inequality?

5. What is one example of a government supported monopoly?

Short Essay Questions

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

2. What example does Friedman use to illustrate his point about direct cash payments to those below a certain income level?

3. 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?

4. What recommendations would Friedman give to a president about an economic downturn?

5. What are the three sources of monopoly?

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

7. What does Friedman assert that capitalism has done for inequalities?

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

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

10. Why is Friedman against fair employment laws?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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 2

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 3

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.

(see the answer keys)

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