|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Who is J.J. Hill?
(a) A government official.
(b) A developer.
(c) A businessman.
(d) A government regulator.
2. What type of businessmen does the author feel are persecuted?
(a) Small businessmen.
(b) American businessmen.
(c) Foreign businessmen.
(d) Local businessmen.
3. According to Rand, what must the individual be willing to do in a capitalist society?
(a) Sacrifice for monopolies.
(b) Sacrifice for the common good.
(c) Sacrifice for money.
(d) Sacrifice for the government.
4. The power of the railroads, according to the author, comes from where?
(a) The subsidies.
(b) The economy.
(c) The market.
(d) The government.
5. In a gold-standard system, gold will flow from a low-interest-rate country to where?
(a) An expansionist economic country.
(b) A high-interest-rate country.
(c) The capital market.
(d) A stable economic country.
6. What does the author blame for crises and depressions in capitalism?
(a) Government interference.
(b) Bad choices.
(c) Cyclical economies.
(d) Allocation of resources.
7. What does the author believe is the basic tool of business?
8. The author believes that as long as capital can flow freely, it will flow where?
(a) To the situation that is best for mankind.
(b) To the situation that is best for society.
(c) To where it is needed the most.
(d) To where it earns the highest rate of return.
9. Who does the author say would earn more money than Einstein?
(a) Elvis Presley.
(b) Karl Marx.
(c) Doris Day.
(d) Donna Mae.
10. What are ALCOA, General Electric and other companies said to be engaged in that cause them to be sued under the antitrust laws?
(a) Mergers and acquisitions.
(c) Labor abuse.
(d) Price fixing.
11. What is the name of the theory that states that good is embodied in various actions regardless of benefits and consequences?
(a) The implication theory.
(b) The adherence theory.
(c) The subjectivist theory.
(d) The intrinsic theory.
12. A fear of _______ leads to the passage of the first antitrust laws.
13. According to the author, what kind of governments use weapons against their own people?
14. The existence of money promotes the division of what?
(a) Social classes.
(d) Economic classes.
15. Branden says that, according to the statists, depressions are part of what?
(a) Government-controlled systems.
(b) Economic cycles.
(c) Laissez-faire capitalism.
(d) Free-market enterprises.
Short Answer Questions
1. What thrives on free trade, according to the author?
2. What is the name of the railroad company in California that holds a virtual monopoly?
3. Copyrights apply to what?
4. When does the gold standard cease to exist?
5. What do the courts protect?
This section contains 437 words
(approx. 2 pages at 300 words per page)