Free or Equal Questions

1. Professor Milton Friedmans research led him to believe in the power of __________ and
______________.
Answer #1
Answer #2

Free markets
Economic freedom

2. If the government gives everybody the same freedom to work . . . some will do better than
others. The result will be ________________, but not _______________.
Answer #1
Answer #2

Equality of opportunity
Equality of equality

3. The free market enables people to go into any industry they want; to trade with whomever
they want; to buy in the cheapest market around the world; to sell in the dearest market around
the world. But most important of all, if they fail, ______________. If they succeed,
_______________.
Answer #1
Answer #2

They bear the costs

They get the benefit

4. In the example of the lead pencil, what conclusion did Professor Friedman reach in the context
of invisible hands?
His conclusion was that not a single person in the world could make the
Conclusion

pencil. The wood could come from a tree in Washington state, which was
cut down by a saw. The saw was made by steel. To make the steel it took
iron ore.

5. When a businessman faces trouble, a market threatens to disappear or a new competitor arises,
there are two things he can do. He can turn to the government for a tariff or a quota (or some
other restriction on competition) or he can _________ and _________.
Answer #1
Answer #2

Adjust
Adapt

6. Economists call the constant renewal of the economy _______________. If we want to

increase our wealth and opportunities, we have to stop doing old things in __________ and start
doing innovative things in ___________. In other words, we have to be __________.
Answer #1
Answer #2
Answer #3
Answer #4

Creative destruction
Old ways
Better ways
Creative

7. An example of creative destruction was used in the video. What technology was created?
What was destroyed? Why was this new technology so important?
Created
Destroyed
Why

Mobile phones
Landlines
It was important because many would say this revolution did more to give

Important

the average person power, and to reduce poverty more than any government
program.

8. The Founding Fathers had learned the lesson of history. The great danger to freedom is the
___________________, especially in the hands of a ________________.

Answer #1
Answer #2

Concentration of power
Government

9. As Milton Friedman said, The society that puts equality before freedom will
_________________________. The society that puts freedom before equality will end up with a
__________________________________.
Answer #1
Answer #2

Will end up with neither

Great measure of both

10. Professor Friedman compares the concept of equality of opportunity to a race where
everyone begins at the starting line at the same time. In contrast, equality of outcome
guarantees that everyone finishes at the same time. Today, equality of outcome is referred to
as fair shares for all. If we applied the fair shares for all concept in this class, all students
would receive an average grade of C. This would be accomplished by taking points away from
students earning As and Bs to give to students earning Ds and Es. Distributing points equally
would result in fair grades for all.
Would you approve of this method in calculating your final grade? Why or why not?
How would this differ from fair shares for all economically? For example, whats the
difference between a successful student being required to give up some of his/her hard-earned
grade and a successful person being expected to give more of his/her hard earned income? If
you support redistribution of income and wealth, shouldnt you also be willing to redistribute
academic grades? After all, many of your fellow students may not have had the advantages in
education and upbringing that youve had.

It would not approve of this method in calculating my final grade. I worked hard for my
grade and put in many hours of reading and doing coursework so someone who only half-assed
assignments shouldnt get my points. Likewise, if I didnt put any effort into this class it
wouldnt be fair for me to take points from someone else. I can only control what I do, not other
students, and my work should be the only thing thats relevant when my final grade is calculated.
The difference between fair shares for all academically and economically is that
academically, it doesnt really much of an effect on me. It could impact someone who receives
financial aid if and theyre not doing their work; a C average might not help them if the GPA
requirement is higher than a 2.0. Whereas, economically its tied to my livelihood. If I live
somewhere where theres not a lot of money to begin with, but Im not even the poorest how is it
fair that my quality of life has to be even worse than it is so someone elses can be better that
doesnt have to work for it?
I wouldnt say I support redistribution of income and wealth. I think it should be my
choice if I want to help those in need or support a certain cause or project. If I didnt have the
same advantages as another person or vice versa then I expect that hard work will be put in to
acquire whatever is wanted or needed. For the most part Im against equality of outcome. I say
for the most part because there are millions of people who arent able to get what they need
because of some health concern or something of that nature, theirs millions of elderly that can no
longer work, or there might be projects in my community that need to be funded. These are
some of the things I dont mind my money going towards. But, why should some of my wealth
and/or income be redistributed to someone like Octomom who decided to have 14 kids then
went on public assistance and was later prosecuted for welfare fraud?
The answer: it shouldnt.