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. To what previous restrictions on labor does Friedman compare licenses?

2. According to Friedman, what are licenses restrictions on?

3. What does the Texas Railroad Commission enforce?

4. What type of society does Friedman believe is least materialistic?

5. How many problems with monopolies does Friedman describe?

Short Essay Questions

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

2. What is occupational licensure?

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

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

5. 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?

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

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

8. Where do you stand: are you on the liberal free market side or more on the government intervention side? Why?

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

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

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Friedman theorizes that actions taken by the government to reduce competition, restrict free choice and raise prices have a negative effect on society. Analyze the various forms of monopolies and what the government's role should be.

Essay Topic 2

Friedman argues against licensure in general. Examine Friedman's arguments against this topic and critique his examples.

Essay Topic 3

Chapter 7 is arguably Friedman's most controversial chapter because of his views of government intervention in discrimination. Friedman, the free market capitalist, believes that government should not have laws based on race and people should be free to shop, purchase, and hire wherever they choose. Analyze Friedman's argument and examine the historical examples he gives to support his opinion.

(see the answer keys)

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