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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. The author believes that capitalism cannot function with what?

2. When the investors realize they have a problem and they all try to get out of the market, what results?

3. The government established by the Founding Fathers is based on theories that began with whom?

4. What chapter does Nathaniel Branden write?

5. What is the name of the railroad company in California that holds a virtual monopoly?

Short Essay Questions

1. What are pre-capitalist societies based on?

2. How does a government protect its citizens?

3. What should the governments of free countries protect?

4. What are the first labor laws concerning factories about?

5. What is the Homestead Act?

6. What is the concept of man that underlies statism?

7. How does gold flow through the international system?

8. How are businessmen persecuted?

9. What does A.D. Neale think about U.S. antitrust laws?

10. What does capitalism do to the standard of living?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Using examples from the book to support your answer; what does Rand mean when she says there is morality in rational self-interest?

Essay Topic 2

According to the theories the authors present, why can freedom only exist under capitalism? Support your answer with examples from the text.

Essay Topic 3

What are some common fallacies about capitalism, and how do the common fallacies affect capitalism? Use examples from the text to support your answer.

(see the answer keys)

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