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

Multiple Choice Questions

1. Friedman claims there is no connection between equal treatment and what?
(a) Equal protection.
(b) Equal opportunity.
(c) Equal rights.
(d) Equal shares of income.

2. How many problems with monopolies does Friedman describe?
(a) Four.
(b) One.
(c) Three.
(d) Two.

3. Friedman believes that the goddess of chance is ______.
(a) Dead.
(b) Blind.
(c) Skilled.
(d) Deaf.

4. In Chapter 10, The Distribution of Income, what was the chief characteristic of progress and development over the past century?
(a) Advances in education.
(b) Increae in leisure time.
(c) Advances in entertainment.
(d) Advances in technology.

5. What specific social responsibility does Friedman condemn for corporations?
(a) Charitable giving.
(b) Sweat free labor practices.
(c) Right to work laws.
(d) Fair hiring practices.

6. Forming a list of who engages in what is known as ______.
(a) Licensing.
(b) Registration.
(c) Organizing.
(d) Listing.

7. What does FEPC stand for?
(a) Fixing Economic Policy for Capitalism.
(b) Finding Education and People Cooperatively.
(c) Future Exercises for Preventing Catastrophes.
(d) Fair Employment Practice Commission.

8. What problem did Dicey write about in 1914?
(a) Prenatal and infant care.
(b) Veteran's health benefits.
(c) Old age pensions.
(d) Education for all.

9. Who said, "There is much ruin in a nation"?
(a) Adam Smith.
(b) Milton Friedman.
(c) Carl Menger.
(d) John Maynard Keynes.

10. To what does Friedman equate competition?
(a) The Prime Meridian.
(b) A perpendicular line.
(c) A parallel line.
(d) A Euclidean line.

11. What is one argument Friedman gives for public housing?
(a) The paternalism effect.
(b) The neighborhood effect.
(c) The law of supply effect.
(d) The law of demand effect.

12. What industry sector is most prevalent in monopoly?
(a) Textile.
(b) Shipping.
(c) Manufacturing.
(d) Service.

13. According to Friedman, what is one unknown negative effect of farm subsidies?
(a) A hindrance to the pursuit of foreign policy.
(b) An emphasis on educational testing.
(c) A removal of three senate seats.
(d) Increase in production of cotton.

14. What term describes the deliberate setting of prices through an agreement by firms?
(a) Collusion.
(b) Monopoly.
(c) Free market.
(d) Labor unions.

15. Friedman theorizes compulsory purchase of annuities has imposed ______ costs for ______ gains.
(a) Little, large.
(b) Social, political.
(c) Minimal, moderate.
(d) Large, little.

Short Answer Questions

1. What is the major reason Friedman asserts why government intervention has had the opposite of the intended effects?

2. Who does Friedman think can abuse licensure?

3. What does the Texas Railroad Commission enforce?

4. What industry does Friedman use to argue against licensure?

5. Friedman simply states that to alleviate poverty, we should have a program directed at ______.

(see the answer keys)

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