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 is the relationship between capitalism and the fraction of income paid for capital in countries?

2. Friedman advocates ______ income of the poor.

3. What does the Texas Railroad Commission enforce?

4. According to Friedman, Social security measures were enacted to make receipt of assistance a matter of ______.

5. What example does Friedman use to argue against the redistribution of wealth?

Short Essay Questions

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

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

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

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

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

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

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

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

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Friedman condemns charitable giving by corporations and argues that they have no social responsibility. Determine if this is economically sound and true in today's society. Do you agree with Friedman's position?

Essay Topic 2

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 3

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.

(see the answer keys)

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