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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. Union high wages are usually at the expense of:

2. Government policies are affected by:

3. Which of the following is considered a form of government assistance to construction workers?

4. In Great Britain:

5. The union does all but the following for its members:

Short Essay Questions

1. What is the purpose of a labor union?

2. What are Friedman's views regarding big government?

3. How do industries gain control, or capture, the commission that regulates them?

4. In recent years, in what sector have unions experienced growth?

5. Do all workers benefit from unions?

6. What is the scope of the Consumer Products Safety Commission?

7. According to Friedman, what policy would promote economic stability?

8. In what ways is the American Medical Association a labor union?

9. After the Depression and the centralization of government, education and schooling also became centralized. What are the effects of this centralization?

10. What are the two big issues faced in new drug approval?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

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 2

Explain what a negative income tax program is. Briefly explain how it would work. Why would it be able to replace most welfare programs? Do you think it is a good idea?

Essay Topic 3

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?

(see the answer keys)

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