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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. Free trade takes place when:

2. The only kind of capital:

3. Government interferes with the price system by:

4. The words equality and liberty come from the:

5. The first head of the Federal Reserve System was:

Short Essay Questions

1. England has a successful National Health Service that many people think the United States should have. What are the problems with the British program?

2. What is a market failure?

3. Why are subsidies considered to be a form of unfair competition?

4. What is a run on a bank?

5. What are the basics for the production and consumption of goods and services?

6. What is an exchange rate?

7. What is the Principle of Comparative Advantage?

8. How has the concept of equality changed over time?

9. Which two New Deal programs were declared unconstitutional?

10. Why was the Federal Reserve System formed?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Friedman proposes an economic Bill of Rights as a way of limiting the scope and growth of government. Discuss and evaluate Friedman's proposal. Do you think it is politically feasible? 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 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