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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. The airline industry is regulated by:

2. Washington D.C.:

3. The trucking industry was brought under ICC jurisdiction in:

4. Objections to the school voucher plan include all but the following:

5. What must an interstate public carrier have in order to operate?

Short Essay Questions

1. Explain how limiting the number of workers results in higher wages.

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

3. What is the purpose given for regulation of industry?

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

5. What is the purpose of a labor union?

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

7. What effect do special interest groups have upon government?

8. Why do increases in the minimum wage result in unemployment?

9. As America was settled, what was one of the first things communities established?

10. What have parents been complaining of in recent years regarding public education?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

The New Deal refers to a group of programs enacted by the Roosevelt Administration to deal with the Great Depression. How did they represent a break with past policies? What precedent did they set in the way of spending? What has happened to government spending since then?

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 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?

(see the answer keys)

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