Capitalism, the Unknown Ideal Quiz | Four Week Quiz A

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This quiz consists of 5 multiple choice and 5 short answer questions through Notes on the History of American Free Enterprise.

Multiple Choice Questions

1. The power of the railroads, according to the author, comes from where?
(a) The market.
(b) The economy.
(c) The government.
(d) The subsidies.

2. What is the goal of the creation of the Federal Reserve System?
(a) To create a spending account for the military.
(b) To ease temporary reserve shortages.
(c) To create a national savings account.
(d) To limit the amount of currency in circulation.

3. What is one of the negatives that political power uses?
(a) Threat of imprisonment.
(b) Restrictions.
(c) Taxes.
(d) Regulation.

4. According to the author, in statism, who owns the members of the tribe?
(a) The tribe.
(b) The elite.
(c) The elders.
(d) The masses.

5. What right does the government have that a private organization does not?
(a) The right to own property.
(b) The right to sue.
(c) The right to negotiate.
(d) The right to use force.

Short Answer Questions

1. The Federal Reserve System was created when the government thought that what was happening?

2. A fear of _______ leads to the passage of the first antitrust laws.

3. The author states that most wars are started by countries with what?

4. The existence of money allows people to avoid the problems of ______.

5. What type of businessmen does the author feel are persecuted?

(see the answer key)

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