2. What effect has Friedman observed that minimum wage laws have had on poverty?
(a) Reduced it.
(b) Spread it out.
(c) Increased it.
(d) Maintained it.

3. Three levels of control are licensing, registration, and ______.
(a) Certification.
(b) Recognition.
(c) Acceptance.
(d) Initiation.

4. According to Friedman, the essence of a competitive market is its ______ character.
(a) Private.
(b) Trustworthy.
(c) Impersonal.
(d) Public.

5. What is one example Friedman uses to demonstrate his point on monopoly in industry?
(a) Automobile vs. wholesale industry.
(b) Textile vs. production industry.
(c) Steel vs. shipping industry.
(d) Entertainment vs. telecommunication industry.

6. What does Friedman believe makes registration easier?
(a) Recognition.
(b) Taxation.
(c) Representation.
(d) Elections.

7. What prefix were New Dealers commonly called?
(a) Un.
(b) Ex.
(c) Ill.
(d) Re.

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

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

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

11. What two professions does Friedman compare to support his claim on the harm it does when people are unable to find mutually acceptable contracts?
(a) Blues singer and opera singer.
(b) Baseball player and basketball player.
(c) Teacher and professor.
(d) Doctor and priest.

12. According to Friedman, Social security measures were enacted to make receipt of assistance a matter of ______.
(a) Authority.
(b) Paperwork.
(c) Right.
(d) Principle.

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

14. What industry does Friedman use to explain his views on monopoly in labor?
(a) Auto.
(b) Manufacturing.
(c) Coal.
(d) Steel.

15. What effect has Friedman observed that public housing has had on juvenile delinquency?
(a) Spread it out.
(b) Reduced it.
(c) Maintained it.
(d) Increased it.