Free to Choose: A Personal Statement Test | Final Test - Easy

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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. New drugs cannot be marketed:
(a) until the drug manufacturer approves them
(b) their profitability is proven
(c) the drug company can produce them cheaply
(d) unless the FDA determines they are safe and effective

2. According to Friedman what was not a reason for accelerated U.S. monetary growth over a fifteen-year period?
(a) the Federal Reserve following the wrong policy
(b) rapid growth in government spending
(c) the full employment policy of the government
(d) workers demanding raises

3. The amount of time from the increase in the quantity of money and the rise in prices is about:
(a) one year
(b) immediate
(c) eighteen months
(d) six months

4. Barter:
(a) is the exchange of money for goods and services
(b) is the exchange of one good or service for another good or service
(c) establishes the value of money
(d) is the exchange ratio of money

5. According to Friedman, the way to cure inflation is to:
(a) reduce the rate of monetary growth
(b) promote spending policies
(c) limit the amount of goods and services available for sale
(d) force consumers to increase their savings

6. In the inner city schools, much of the money goes for all but the following:
(a) repairing damages from vandalism
(b) education
(c) maintaining discipline
(d) preventing vandalism

7. Private education prevailed until the:
(a) 1930s
(b) 1950s
(c) 1920s
(d) 1940s

8. The growth of bureaucracy leads to:
(a) lower costs
(b) a conflict between desired objectives
(c) faster resolution of problems
(d) greater efficiency

9. Most of the funding for public education is provided by the:
(a) state
(b) federal government
(c) city
(d) county

10. To improve their position, railroads engaged in:
(a) intensive advertising
(b) good service
(c) rate fixing
(d) promotions

11. During a hyperinflation:
(a) prices may double during a day
(b) prices fail quickly
(c) wages increase faster than prices
(d) none of the above

12. What problems have there been with unions?
(a) not enough members
(b) fraud
(c) salaries lag the non-union sector
(d) misuse and misappropriation of funds

13. In Virginia in the 1600s, what functioned as money?
(a) tobacco
(b) beads
(c) wampum
(d) gold

14. Objections to the school voucher plan include all but the following:
(a) it would decrease the quality of education
(b) there might be a constitutional church-state issue
(c) there would be an increase in total costs of education
(d) there is the possibility of fraud

15. In Great Britain, the post World War II trend has been toward:
(a) Fabian socialism and New Deal liberalism
(b) laissez-faire
(c) Communism
(d) liberal capitalism

Short Answer Questions

1. Government spending can be financed by all but:

2. Who has the greatest amount of choice in the selection of schooling?

3. Kenneth B. Clark describes public school system as:

4. All but the following are functions of the CPSC:

5. Friedman suggests constitutional amendments to limit government in all but the following areas:

(see the answer keys)

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