CHAPTER 8
Classical Liberalism
Defense of Industrial Capitalism
MULTIPLE CHOICE
5. The classical liberal psychological creed assumed human beings were
a. egoistic
b. altruistic
c. misanthropic
d. philanthropic
6.
which is the view that
a. all human actions are motivated by a basic moral code.
b. all human actions are motivated by a desire to achieve pleasure and avoid pain.
c. all human actions are motivated by paternalism.
d. all human actions are motivated by instinct.
7. Classical liberalism is based on atomism which is the view that
a. society is like a family.
b. society is more important than any individual.
c. society is merely an aggregation of individuals.
d. society is inherently oppressive.
8. According to Thomas Hobbes, the outcome of the innate egoism of human beings will result
in
a. a harmonious natural order.
b. a natural state of war.
c. long-term economic growth.
d. little or no need for a strong government.
9. According to Adam Smith, the outcome of the innate egoism of human beings will result in
a. a harmonious natural order.
b. a natural state of war.
c. a dog-eat-dog world.
d. a need for a strong, activist government.
10. The most important work of classical economic liberalism is
a. The Wealth of Nations by Adam Smith published in 1776.
b. The General Theory of Employment, Interest and Money by John M. Keynes published
in 1937.
c. The Communist Manifesto by Karl Marx published in 1848
d. Capitalism and Freedom by Milton Friedman published in 1982.
11. According to Adam Smith, the welfare of society will be maximized by
a. a strong, activist government.
b. a free and unrestrained market.
c. a strong and effective police force.
d. a good educational system.
12. Economic progress depends on the capacity of an economy to produce, and productive
capacity depends on
a. an accumulation of capital and division of labor.
b. an increasing population and the acquisition of skill.
c. universal education and health care.
d. natural resources and an effective government.
13. Thomas Robert Malthus believed that
a. birth control and abstention were immoral.
b. population, if unchecked, tended to outstrip the available food supply.
c. England was too small to support its existing population.
d. technological progress would increase the available food supply.
14. Thomas Malthus believed that there were preventives checks and positive checks on
population growth. What are these preventive and positive checks?
a. preventive checks include restraint and birth control; positive checks include famine and
war.
b. positive checks include restraint and birth control; preventive checks include famine and
war.
c. positive checks include an expanding food supply; preventive checks include poverty.
d. positive checks include bribes and other monetary rewards; preventive checks include
taxes and fines.
11. The philosophy of leaving the allowing the market to operate without the intervention of
government is called
e. laissez-faire
f.
g. à chacun son goût.
h. comme ci, comme ça