|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. What kind of rights, according to the author, is the American system of government based on?
(a) Minority rights.
(b) Individual rights.
(c) Majority rights.
(d) Power rights.
2. According to the author, what will cure economic problems quickest and best?
(a) The economy.
(b) Restrictions of trade.
3. The Federal Reserve System was created when the government thought that what was happening?
(a) A depression.
(b) A shortage of bank reserves.
(c) A shortage of interest reserves.
(d) A recession.
4. Money functions as a __________ in transactions.
(a) Similar currency.
(b) Easy standard.
(c) Common denominator.
(d) National linkage.
5. To function as a medium of exchange, an item must be durable and what?
6. The author feels that the only way to make the industry responsive to the market is to make the airwaves what?
(c) Private property.
(d) Bought and sold.
7. How does the author think the U.S. government does with creating property rights in airwaves?
(a) The author feels the government does a good job.
(b) The author feels the government needs to modify its approach.
(c) The author feels the government succeeds.
(d) The author feels the government fails.
8. The author believes that as long as capital can flow freely, it will flow where?
(a) To the situation that is best for society.
(b) To where it is needed the most.
(c) To the situation that is best for mankind.
(d) To where it earns the highest rate of return.
9. Who is the author of the "Gold and Economic Freedom" chapter?
(a) Richard Fullerton.
(b) Marcus Bludger.
(c) Alan Greenspan.
(d) Theodore Huffington.
10. According to classical economics, what is the basis of competition?
(a) Producing and selling in a regulated system.
(b) Producing and selling in a down market.
(c) Producing and selling for profit.
(d) Producing and selling as much as possible.
11. According to Rand, capitalism is based on what?
(a) Open borders.
(b) Government interference.
(d) Altruistic principles.
12. What is the position held by the man who brings the airwaves under U.S. government control?
(a) Secretary of Commerce.
(b) Secretary of State.
(c) Secretary of the Interior.
(d) Secretary of Industry.
13. What is the name that the nobility, and the king, use to describe people who are considered property?
14. The author compares statism to what kind of rule?
(a) Mob rule.
(b) Elitist rule.
(c) Gang rule.
(d) Dictator rule.
15. The bloodiest conflicts in history have been _______ _______.
(a) Civil wars.
(b) Area wars.
(c) Local wars.
(d) World wars.
Short Answer Questions
1. What do the courts protect?
2. A fear of _______ leads to the passage of the first antitrust laws.
3. How does government regulation, according to the author, try to protect the consumer?
4. What subject does Stewart Holbrook write about?
5. The Aluminum Company of America is a monopoly in the sense that it has control over what?
This section contains 480 words
(approx. 2 pages at 300 words per page)