View a FREE sample

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

Multiple Choice Questions

1. What does Friedman believe would be an effective way of reversing the trend toward bigger government?
(a) new legislation
(b) eliminating special interest groups
(c) limiting budgets
(d) adoption of an economic Bill of Rights

2. To improve their position, railroads engaged in:
(a) intensive advertising
(b) promotions
(c) rate fixing
(d) good service

3. The ideas of human freedom and economic freedom are best exemplified in:
(a) India
(b) the United States
(c) England
(d) Germany

4. New drugs cannot be marketed:
(a) until the drug manufacturer approves them
(b) the drug company can produce them cheaply
(c) their profitability is proven
(d) unless the FDA determines they are safe and effective

5. The purpose of the Consumer Products Safety Commission is to:
(a) protect the consumer from unsafe products
(b) to help advertise products
(c) assist manufacturers in the promotion of products
(d) to help introduce new products

6. All but the following are functions of the CPSC:
(a) advertising
(b) development of standards for consumer products
(c) conduct safety tests on products
(d) to help consumers evaluate products

7. Parents who send their children to private schools:
(a) pay not taxes for public schools
(b) none of the above
(c) still pay taxes for public schools
(d) pay a lower amount of taxes for public schools

8. Which of the following is not a method of unions securing higher wages?
(a) enforcing a higher wage
(b) restricting jobs
(c) collusion with the employer
(d) the free market

9. Who has the greatest amount of choice in the selection of schooling?
(a) the middle income group
(b) the indigent
(c) all have equal choice
(d) the wealthy

10. Which of the following is a method of government enforcing higher wages?
(a) minimum wage laws
(b) secret deals
(c) none of the above
(d) market wages

11. As a result of inflation, there is:
(a) more goods and services to buy
(b) no change in prices
(c) an increase in prices
(d) decrease in prices

12. Most of the funding for public education is provided by the:
(a) county
(b) state
(c) federal government
(d) city

13. Friedman favors:
(a) expanding the scope of government
(b) more government controls
(c) bigger government
(d) limiting the growth of government

14. What must an interstate public carrier have in order to operate?
(a) none of the above
(b) a big trucking company
(c) permission from the state
(d) certificate of public convenience and necessity

15. According to Friedman what was not a reason for accelerated U.S. monetary growth over a fifteen-year period?
(a) the full employment policy of the government
(b) rapid growth in government spending
(c) workers demanding raises
(d) the Federal Reserve following the wrong policy

Short Answer Questions

1. The amount of time from the increase in the quantity of money and the rise in prices is about:

2. Washington D.C.:

3. The reason given for regulation of industry is to:

4. The growth of bureaucracy leads to:

5. Where have labor unions been stronger than they are in the United States?

(see the answer keys)

This section contains 497 words (approx. 2 pages at 300 words per page) View a FREE sample