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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. What is one disadvantage Friedman describes of programs to alleviate poverty?

2. In 1961, how much did the government spend on direct welfare payments and programs?

3. Friedman gives examples of successful government intervention except ______.

4. What effect has Friedman observed that public housing has had on juvenile delinquency?

5. What is the major reason Friedman asserts why government intervention has had the opposite of the intended effects?

Short Essay Questions

1. In Chapter 13, Friedman summarizes his examples. Which do you agree with?

2. What are the three sources of monopoly?

3. What does Friedman believe are the effects of farm price supports?

4. Who are the biggest advocates of occupational licensure that Friedman describes?

5. Why is Friedman against fair employment laws?

6. What is the progressive income tax?

7. What example does Friedman use to illustrate his point about direct cash payments to those below a certain income level?

8. What are the three forms of control discussed by Friedman in Chapter 9, Occupational Licensure?

9. Do you think people should be forced to participate in social security?

10. Do you think doctors should be required to obtain a license?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Friedman makes a clear distinction between the historical usage of the term liberal and the present day definition. Compare and contrast the different uses of the term liberal.

Essay Topic 2

What is Friedman's stance on social welfare? Using examples from the text, explain his position and then advocate or rebut his position.

Essay Topic 3

Friedman theorizes that actions taken by the government to reduce competition, restrict free choice and raise prices have a negative effect on society. Analyze the various forms of monopolies and what the government's role should be.

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