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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. Prices function to transmit information to all but:

2. What interferes with the transmittal of information by prices?

3. Regarding the depression, Roosevelt's adviser's believed in:

4. After World War II there was a lot of interest in:

5. The words equality and liberty come from the:

Short Essay Questions

1. What is an exchange rate?

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

3. What happens when a nation imposes tariffs to protect domestic jobs?

4. Which two New Deal programs were declared unconstitutional?

5. What are Open Market Operations?

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

7. What is a market failure?

8. What is a restriction of payments?

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

10. What is meant by equality of outcome?

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

Think about the topics covered in the book. Select an area that you are interested in and discuss and evaluate it. Do you agree or disagree with Friedman? Why or why not?

Essay Topic 3

Explain the functions of a labor union. In what ways to labor unions cause higher wages? Who benefits from labor unions and why?

(see the answer keys)

This section contains 519 words (approx. 2 pages at 300 words per page) View a FREE sample