2. Friedman hypothesizes that there has been a change in discrimination along with the rise of capitalism because ______.
(a) Religion has argued equality on moral grounds.
(b) Contract arrangements replaced status as a source of wealth.
(c) Greed has overtaken all ethical values.
(d) There has been an increase in the population of skilled workers.

3. In what decades did intellectuals in the United States consider capitalism to be defective?
(a) 1940s and '50s.
(b) 1920s and '30s.
(c) 1930s and '40s.
(d) 1900s and '10s.

4. For Friedman, what is the main argument for licensure?
(a) Maternalism.
(b) Materialism.
(c) Racism.
(d) Paternalism.

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

6. What was the exemption of the federal income tax when Friedman wrote "Capitalism and Freedom"?
(a) $300.
(b) $2000.
(c) $1000.
(d) $600.

7. Another threat for Friedman to the preservation and expansion of freedom is:
(a) An internal threat of labor unions.
(b) An internal threat of government regulation.
(c) An internal threat of licensure requirements.
(d) An internal threat of unfair political practices.

8. According to Friedman, what are licenses restrictions on?
(a) The age of those who are licensed.
(b) The qualifications of those doing the hiring.
(c) What schools professionals may attend.
(d) Who may hire whom.

9. What does Friedman advocate the abolition of in Chapter 10, The Distribution of Income?
(a) Corporate income tax.
(b) Trade unions.
(c) Welfare.
(d) Flat-rate income tax.

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

11. What is one example of a government supported monopoly?
(a) The coal industry.
(b) The auto industry.
(c) The sugar cane industry.
(d) The postal service.

12. According to Friedman, who benefits from licensure?
(a) Licensed practitioners.
(b) Clients.
(c) Customers.
(d) Aspirants.

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

14. Friedman gives examples of successful government intervention except ______.
(a) School system.
(b) Magnificent dams.
(c) Sherman antitrust laws.
(d) The income tax.

15. What type of society does Friedman believe is least materialistic?
(a) Collectivist.
(b) Capitalist.
(c) Socialist.
(d) Marxist.