|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. To function as a medium of exchange, an item must be durable and what?
2. What is one of the keystones of capitalism?
3. What right does the government have that a private organization does not?
(a) The right to sue.
(b) The right to use force.
(c) The right to own property.
(d) The right to negotiate.
4. What does Greenspan claim is the best protection for the consumer?
(a) Government regulation.
(b) A controlled economy.
(c) The profits of businessmen.
(d) Independent agencies.
5. The author believes that businessmen take the blame for what?
(d) Government actions.
6. Who brings the airwaves under U.S. government control?
(b) Herbert Hoover.
7. How does government regulation, according to the author, try to protect the consumer?
(a) Through quality control.
(b) Through patents and trademarks.
(c) Through elimination of competition.
(d) Through force and fear.
8. During the Industrial Revolution, where do many children find jobs?
(a) In homes.
(b) In restaurants.
(c) In factories.
(d) In stores.
9. According to Rand, what must the individual be willing to do in a capitalist society?
(a) Sacrifice for the government.
(b) Sacrifice for money.
(c) Sacrifice for the common good.
(d) Sacrifice for monopolies.
10. Railroads are built using government money, and what happens to many of them?
(a) They prosper.
(b) They abuse their workers.
(c) They repay the investors.
(d) They go bankrupt.
11. The author compares statism to what kind of rule?
(a) Elitist rule.
(b) Dictator rule.
(c) Gang rule.
(d) Mob rule.
12. The Aluminum Company of America holds a position as the only producer of what?
(a) Aluminum alloy.
(b) Primary aluminum.
(c) Secondary aluminum.
13. What is the goal of the creation of the Federal Reserve System?
(a) To limit the amount of currency in circulation.
(b) To ease temporary reserve shortages.
(c) To create a national savings account.
(d) To create a spending account for the military.
14. The author believes that capitalism cannot function with what?
(b) Individual rights.
(c) Uneducated workers.
15. The first labor laws aimed at children are enacted in what year?
Short Answer Questions
1. Instead of reading the antitrust laws to decide if something is legal, people must read what?
2. What thrives on free trade, according to the author?
3. How many keystones are there to capitalism?
4. The existence of money allows people to avoid the problems of ______.
5. What is the position held by the man who brings the airwaves under U.S. government control?
This section contains 412 words
(approx. 2 pages at 300 words per page)