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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. According to Friedman, what is the goal of government intervention regarding the distribution of income?

2. What effect has Friedman observed that public housing has had on juvenile delinquency?

3. To what does Friedman equate competition?

4. For Friedman, what is one major problem in interpreting the evidence on the distribution of income?

5. According to Friedman, what are licenses restrictions on?

Short Essay Questions

1. What are the three primary forms of monopoly?

2. Friedman accepts the reasoning that justifies "governmental action to alleviate poverty" (p. 191). What two issues must be addressed in order for this to happen?

3. According to Friedman, can a liberal be an egalitarian?

4. Do you think doctors should be required to obtain a license?

5. Where do you stand: are you on the liberal free market side or more on the government intervention side? Why?

6. What example does Friedman use to illustrate his point about direct cash payments to those below a certain income level?

7. According to Friedman, do monopolies have any sort of "social responsibility"?

8. In Chapter 13, Friedman summarizes his examples. Which do you disagree with?

9. What is the problem for Friedman with fair employment commission legislation?

10. If people were given cash instead of subsidies like food stamps, how might they would use it to get themselves out of poverty, and how might it be wasted?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Milton Friedman (1912--2006) was a Nobel Laureate economist, who not only made important theoretical contributions but also was deeply influential across the world in policy. He was a prominent figure in the conservative and libertarian movements of the late 20th century and promoted classical liberal ideas in his many popular works, including not only books but also videos, lectures, and magazine columns. Friedman published "Capitalism and Freedom" in 1962 and the book has sold half a million copies since. Write an informational essay on Friedman including his early life, academics, Nobel Prize, famous ideas, published works, and lasting impacts.

Essay Topic 2

Friedman condemns charitable giving by corporations and argues that they have no social responsibility. Determine if this is economically sound and true in today's society. Do you agree with Friedman's position?

Essay Topic 3

Friedman describes the current international trade arrangements of his time. In Friedman's day, the value of currency was tied to the gold standard. This arrangement was known as the Bretton Woods system. Analyze this currency system. What is it? How did it work? What were the advantages and disadvantages of it? How does it compare with what we have in the present day?

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