S30 RI#2

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S30 RI#2

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1. Communist and fascist dictatorships would agree on all of the following except

A. promoting economic equality

B. using secret police to suppress opposition

C. selecting an elite based on party membership

D. censoring the media in order to control public opinion

Clear selection

2. According to this source, Friedman believed that central banks should maintain control of prices by

A. employing fiscal policy

B. manipulating the money supply

C. imposing price and wage controls

D. buying and selling stock in major corporations

Clear selection

3. Classical liberals oppose the formation of unions primarily because they believe that unions

A. distort the labour market and increase the cost of production

B. encourage governments to spend lavishly on public works

C. fail to act in the long-term interests of their members

D. restrict consumer confidence and spending

Clear selection

4. During the 1980s and 1990s, individuals who criticized the implementation of "trickle-down," supply-side economic policies contended that such policies

A. caused income gaps to decrease significantly

B. created weaker competition within the corporate sector

C. challenged traditional free-market solutions to problems

D. concentrated more wealth in the hands of already wealthy citizens

Clear selection

5. Friedman's point of view, as expressed in the source above, is based primarily on the assumption that

A. corporations will be law abiding and will follow the rules of fair competition

B. government intervention in any economy is often unplanned and haphazard

C. corporate decision making is often influenced by the needs of the community

D. governments will provide directly for the social-welfare needs of the community

Clear selection

6. Social democrats have traditionally opposed government policies that

A. emphasize the common good over individual profit

B. regulate business practices to protect consumers

C. provide social programs for low-income groups

D. reduce income taxes for high-income earners

Clear selection

7. Contemporary conservative thinkers dispute the modern liberal belief that

A. economic growth is desirable and enhances quality of life

B. political authority should emerge through democratic processes

C. the civil rights and liberties of citizens should be guaranteed constitutionally

D. the state must play a greater role in ensuring economic security for all citizens

Clear selection

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