1. Which of the following would be allowed in a purely capitalistic nation? In the lecture that compared Denmark to the United States, where did you see examples that go against the principles of capitalism in the U.S.?

1. Free trade and no forced closures of businesses during a pandemic; Donald Trump's reduction in corporate and personal income tax rates.
2. Income taxes, eminent domain takings and barber shop licenses; the creation of the Trans-Pacific Partnership.
3. School choice, income inequality and profiting from selling medical masks; the Kelo v. New London, CTSupreme Court case.
4. Corporate welfare and government surveillance of everyone's email and mail; the growth of income inequality.
5. A and C only.

1. At some point in the future there will probably be only electric or alternative energy-powered cars on the road. Where will it come from if world economic history is a useful guide?

1. Centrally-planned production by the U.S. government to ensure quality and reliability.
2. The contributions of multitudinous strangers, all contributing their tiny amounts of knowledge without the prompting of masterminds or central planning by legislators.
3. The Department of Energy - if the Biden Administration will simply trust scientists to do their research.
4. The self-interested activities of people with unique comparative advantages that leads to profit rather than selfless acts of love and kindness.
5. B and D only.

1. President Biden wants to increase the estate tax (the tax on wealth when a person dies) from 23.8% to 43.4%. Based on what we learned from fellow Democrat John F. Kennedy:

1. The increase would lead to greater tax revenue and will help poor people gain access to more social welfare benefits with no unintended consequences.
2. The increase would lead to no change in revenue over time but less income inequality stemming from a fairer tax code.
3. The higher tax would reduce the problem of scarcity for all working poor people.
4. The increase would be an economically inferior solution to reducing income inequality. In fact, lower taxes - even on the rich - tends to help the poor more.
5. B and D only.

1. Take a moment to log on tohttps://www.freedominthe50states.org/ In which state would you tend to see regulatory policies that Adam Smith would most approve of? Where would you see occupational licensing that would please Karl Marx?

1. Idaho; Illinois
2. New York; Wyoming
3. Washington; Oregon
4. Vermont; Colorado
5. Hawaii; Rhode Island

1. In which state would you see income tax policies that are similar to the time when Franklin D. Roosevelt was president? Which state has educational freedom that is like Belgium?

1. California; Florida
2. Texas; Michigan
3. Tennessee; Maryland
4. New York; North Dakota
5. Florida; Arizona