Free to Choose: A Personal Statement Short Answer Test Questions

Short Answer Questions

Directions: Answer each question with the appropriate short response.

Short Answer Questions - Chapter 1, The Power of the Market

1. The economy functions on the basis of:

2. According to Friedman, the former Soviet economy was based on:

3. The command elements of every economy include things like:

4. Adam Smith says that voluntary exchange will not take place unless:

5. The price system functions in such a way that each individual acting in his own best interests, makes everyone better off. This concept is known as the:

6. Adam Smith wrote:

7. Which of the following is not a function of the price system:

8. The higher price of pencils results in all but the following:

9. What is a good source of information on prices and markets?