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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, the former Soviet economy was based on:

2. The economy functions on the basis of:

3. A deposit represents:

4. The New Deal programs were not carried to their completion because of:

5. The equality of outcomes approach is based on:

Short Essay Questions

1. In what way did Roosevelt and his advisers break with traditional economies?

2. What good does Friedman use as an example of voluntary exchange?

3. What did Jefferson mean by unalienable rights?

4. What did Thomas Jefferson mean when he wrote of equality?

5. What is the Principle of Comparative Advantage?

6. What is the major federal welfare program in the Untied States and what are its components?

7. What is the infant industry argument for protection?

8. What are the three functions of prices?

9. What happens if there in interference with prices?

10. Which two New Deal programs were declared unconstitutional?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Friedman says that special interests generally prevail over general interests. What does he mean by this? Do you agree with him? Why or why not?

Essay Topic 2

How do government interference and controls affect all of us? We pay for various government programs through taxes. Is this fair? Do you feel that we are getting what we pay for? Why or why not?

Essay Topic 3

Explain the purpose of regulation? Does it serve that purpose? What have been the economics effects of regulation? Have they been good or bad?

(see the answer keys)

This section contains 567 words (approx. 2 pages at 300 words per page) View a FREE sample