Free to Choose: A Personal Statement Test | Mid-Book Test - Hard

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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. An economic contraction means all but the following:

2. Government interferes with the price system by:

3. After World War II there was a lot of interest in:

4. What is the cause of the failure of many welfare programs?

5. An egalitarian supports:

Short Essay Questions

1. What did Jefferson mean by unalienable rights?

2. What good does Friedman use as an example of voluntary exchange?

3. What is a run on a bank?

4. Which of the three kinds of equality causes a conflict with liberty?

5. What did Thomas Jefferson mean when he wrote of equality?

6. What is the infant industry argument for protection?

7. What are the three functions of prices?

8. What is the major federal welfare program in the Untied States and what are its components?

9. What is the Principle of Comparative Advantage?

10. What were the New Deal programs?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

The New Deal refers to a group of programs enacted by the Roosevelt Administration to deal with the Great Depression. How did they represent a break with past policies? What precedent did they set in the way of spending? What has happened to government spending since then?

Essay Topic 2

In spite of the theory saying that free trade is best, there are many trade barriers, like tariffs on imports or exports, import and export quotas,etc. What are the effects of these trade barriers? Why do nations impose them?

Essay Topic 3

Why was the Depression of 1929 so severe? What factors contributed to it? Are these similarities with the situation today? What are the differences?

(see the answer keys)

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