18. The difference between the value of labor and the wage paid for it is called: A. Alienation B. Surplus value C. Proletariat D. Means of production E. Bourgeoisie 19. Marx predicts that a society's superstructure is controlled by its: A. Substructure B. Proletariat C. Alienation D. Surplus value E. Bourgeoisic 20. Which is not a weakness of the Lockcan defense of free markets? A. It rests on the unproven assumption that people's rights to liberty and property take precedence over all other rights. B. It does not follow that the rights to property and liberty must override all other rights. C. It assumes that humans are born dependent on one another. D. Free markets create unjust incqualities. 21. What is not a component of the thought of 'absolute advantage' of David Ricardo? A. A nation has the advantage in production for they have greater/better/more accessible natural resources B. A nation has the advantage in production for they have greater/better/more technology C. A nation has the advantage in production for they have greater/better/more efficient labor costs D. A nation has the advantage in production for they have greater/better/more efficient equipment E. A nation has no advantage in production for they have better climate 22. What is not a component of ' communitarian societies?' A. Rights are defined to ensure needs of the community are met B. Single authority decides what is to be produced C. Open markets D. Duties are defined to ensure needs of the community are met E. Needs of the community are primary 23. What is not a criticism of John Locke's theory of natural rights? A. Free markets create just inequalities B. Humans are born dependent on each other learning from and caring one another for survival C. The assumption of natural rights is unproven D. The distribution of property within the free market will widen unless government adjusts the disparity E. The negative right of liberty may not exist and should not override other rights 24. What is not a component of the thought of Karl Marx? A. The purpose of government is to protect the ruling class in traditional societies B. The proletariat is in control of the bourgeoisic C. Workers cannot produce anything for themselves unless the capitalist provides the ability to do so D. Capitalists do not pay the full value of their workers who can only sell their labor within the marketplace E. Free-market capitalism necessarily produces extremes of inequality 25. What is not within the combined construct of the *mixed economy?" A. Private property B. Lacking or no government regulation C. Utilitarian benefits of the market economy D. Retain the free market system E. Proper respect for human rights, justice, and care ethics26. What is not a component of the thought of Adam Smith? A. Free markets ensure buyers will purchase goods at the lowest prices B. Competition forces sellers drop prices to conserve resources while producing what consumers wish to purchase C. Pursuing his own interest man frequently promotes that of society than when intending promote it D. Natural price covers production costs to include the going rate of profit E. Private property is a communal asset necessary to the individual and society as a whole equally 27. According Marxist theory what is not a "result of unrestrained free markets?" A. Capitalist economies will experience repeated cycles of economic downturns B. The laborers will prosper at the at the expense of the employer C. Increasing power of industrial power into a relative few hands/corporations D. Capitalist laborers position within the overall economy/society will worsen E. Capitalists in self-interest will increase assets under their control 28. According to Marx's theory on worker alienation what is not a component of this theory? A. Capitalism forces people into work they find dissatisfying and unfulfilling B. The capitalist strips the worker of the product they make and uses it in an antagonistic fashion against them C. The Capitalist and capitalism allows individuals to work in positions they control D. Capitalism brakes down human society into antagonistic classes alienating and separating them from one another E. The capitalist and Capitalism alienate people from themselves disillusioning them of their needs 29. What is not a component of the thought of John Locke? A. Man has a state of perfect freedom to order their actions and dispose of their possessions and persons as the think B. Each man in the state of nature is the political equal of all others and perfectly free C. Man is in a state of equality wherein all the power and jurisdiction is reciprocal D. God, faith, and church are the laws by which nature operates E. No one ought to harm another in his life, health, liberty, or possessions 30. What is not a component of *individualistic societies?" A. Command markets B. Contract rights C. Government is to protect private property D. Limited government E. Individual firms make decision of what to produce MILTON FRIEDMAN - CAPITALISM AND FREEDOM 31. According to Friedman's Capitalism and Freedom: Chapter 1 - The Relation between Economic Freedom and Political Freedom what was the "emphasis" placed in the arena of ideas by "intellectual descendents (such as Dicey, Mises, Hayek, and Simons) of the Philosophical Radicals (Bentham and the Benthamite Liberal/Libertarians)" who "feared a continued movement toward centralized control of economic activity?" A. Political free thought as a means of economic justice B. Economic freedom as a means toward political freedom C. Economic freedom through a centralized controlled economy D. Political freedom through a centralized and controlled government E. Authoritarian controls over the economy to centralize and stabilize fluctuations 32. According to Friedman's Capitalism and Freedom: Chapter VII - Capitalism and Discrimination "the maintenance of the general rules of [what] and of [what] have been a major source of opportunity for Negroes and have permitted them to make greater progress than they otherwise could have made." A. Government; society B. Socialism; collective property C. Private property; socialism D. Collective property; the free market E. Private property; capitalism33. According to Friedman's Capitalism and Freedom: Chapter X - The Distribution of Income "the most far- reaching criticism has come from the Marxists. Marx [1818-1883] argued that labor was [what]. Why? Because labor produced the whole of the product but got only part of it; the rest is Marx's [what] Even if the statements of fact implicit in this assertion were accepted, the value judgment follows only if one accepts the capitalist ethic. Labor is 'exploited' only if labor is entitled to what it produces. If one accepts instead the socialist premise, 'to each according to his need, from each according to his ability' - whatever that may mean - it is necessary to compare what labor produces, not with what it gets but with its "ability', and to compare what labor gets, not with what it produces but with its 'need.' Of course the Marxist argument is [what] on other grounds as well. There is, first, the confusion between the total product of all co-operating resources and the amount added to product - in the economist's jargon, marginal product. Even more striking, there is an unstated change in the meaning of 'labor' in passing from the premise to the conclusion. Marx recognized the role of capital in producing the product but regarded capital as embodied labor. Hence, written out in full, the premises of the Marxist syllogism would run: 'Present and past labor produce the whole of the product. Present labor gets only part of the product.' The logical conclusion is presumably *Past labor is exploited,' and the inference for action is that past labor should get more of the product, though it is by no means clear how, unless it be in elegant tombstones." A. Exploited; fractional value; valid B. Exploited; total value; invalid C. Non-exploitable; surplus value; valid D. Managed; waste; valid E. Exploited; surplus value; invalid 34. According to Friedman's Capitalism and Freedom: Chapter I - The Relation between Economic Freedom and Political Freedom "as liberals, we take freedom of the individual, or perhaps the family, as our ultimate goal in judging social arrangements... in a society freedom has nothing to say about [what]; it is not an all-embracing ethic. Indeed a major aim of the liberal is to leave the ethical problem [what] to wrestle with. The 'really' important ethical problems are those that face an individual in a free society - what he should do with his freedom." A. What a society does with the freedom of individuals; for society B. What an individual does with his freedom; for the individual C. What an individual takes as a profession; for clergy D. What the collective does with the individual; for politicians E. What is necessary for a man to live; for government 35. According to Friedman's Capitalism and Freedom: Chapter X - The Distribution of Income what is the conclusion of the FOUR Robinson Crusoes? A. The unwillingness of the rich Crusoe to share his wealth does justify the use of coercion by the others B. The inequality of the four islands of the Crusoes allows for co-operation on the part of some C. The four Crusoes will plunder the others islands so as to survive D. The unwillingness of the rich Crusoe to share his wealth does not justify the use of coercion by the others E. The inequality of the four islands of the Crusoes allows for co-operation on the part of all 36. According to Friedman's Capitalism and Freedom: Chapter V - Fiscal Policy "I have done some fairly extensive empirical work, for the U.S. and other countries, to get some more satisfactory evidence. The results are striking. They strongly suggest that the actual outcome will be closer to the quantity theory [ the supply of money within an economy has a direct relation to prices] extreme than to the [what] ... One thing however is clear. Whether the views so widely accepted about the effects of fiscal policy [espoused by Keynes and his intellectual followers] be right or wrong, they are [what] by at least one extensive body of evidence. I know of no other coherent or organized body of evidence justifying them. They are part of [what], not the demonstrated conclusions of economic analysis or quantitative studies. Yet they have yielded immense influence in securing widespread public backing for far-reaching governmental interference in economic life." A. Benthamite; contradicted; economic mythology B. Hayekian; confirmed; economic mythology C. Keynesian; contradicted; economic mythology D. Millian; confirmed; economic mythology E. Marxist; contradicted; economic mythology37. According to Friedman's Capitalism and Freedom: Chapter I - The Relation between Economic Freedom and Political Freedom "viewed as a means to the end of political freedom, economic arrangements are important because of their effect on the [what] or [what] of power. The kind of economic organization that provides economic freedom directly, namely, [what], also promotes political freedom because it separates economic power from political power and in this way enables the one to offset the other." A. Enlarging; improving; competitive socialism B. Concentration; dispersion; competitive capitalism C. Expanding; diminishing; communism D. Concentration; improving; socialism E. Enlarging; improving; competitive capitalism 38. According to Friedman's Capitalism and Freedom: Chapter X - The Distribution of Income "the operative function of payment in accordance with product in a market society is not primarily distributive, but allocationhe central principle of a market economy is co-operation through voluntary exchange... [what] is therefore necessary in order that resources be used most effectively, at least under a system depending on voluntary co-operation. Given sufficient knowledge, it might be that compulsion could be sustained for the incentive of reward, though I doubt that it could. One can shuffle inanimate objects around; one can compel individuals to be at certain places at certain times; but one can hardly compel individuals to put forward their best efforts. Put another way, the substitution of what] for co-operation changes the amount of resources available... Even the severest internal critics of capitalism have implicitly accepted payment in accordance with product as ethically fair." A. Payment in accordance to effort; compulsion B. Payment in accordance to intention; co-operation C. Payment in accordance with product; compulsion D. Payment is accordance to value; compulsion E. Payment in accordance to dictate; co-operation 39. According to Friedman's Capitalism and Freedom: Chapter II - The Role of Government in a Free Society "the [what] reduces the strain on the social fabric by rendering conformity unnecessary with respect to any activities it encompasses. The wider the range of activities covered by the market, the fewer are the issues on which explicitly political decisions are required and hence on which it is necessary to achieve agreement. In turn, the fewer the issues on which agreement is necessary, the greater is the likelihood of getting agreement while [what]." A. Widespread use of the market; maintaining a free society B. Reduction in the use of the market; maintaining social justice C. Truncation of the market; maintaining economic justice D. Widespread use of the market; maintaining social welfare E. Reduction in the use of the market; maintaining social welfare 40. According to Friedman's Capitalism and Freedom: Chapter I - The Relation between Economic Freedom and Political Freedom "a society which is [ what] cannot be [ what], in the sense of guaranteeing [ what]?" A. Democratic; socialist; economic justice B. Authoritarian; democratic; social justice C. Republican; fair; justice D. Socialist; democratic; individual freedom E. Democratic; totalitarian; social justice