Alessia Sanchez Econ 1740 11/25/13 1.

According to the authors, Adam Smith wrote of the three (3) essential roles of government. Role #1 : The duty of protecting the society from the violence and invasion of other independent societies. Role #2 : The duty of protecting, as far as possible, every member of the society from the injustice of oppression of every other member of it, or the duty of establishing an exact administration of justice. Role #3 : The duty of erecting and maintaining certain public works and certain public institutions, which it can never be for the interest of an individual, or small number of individuals, to erect and maintain. Role #4 : The duty to protect members of the community who cannot be regarded as responsible individuals. 2. What are the four (4) arguments in favor of tariffs? Argument #1 : National Security Argument Argument #2 : Infant Industry Argument Argument #3 : beggar-thy-neighbor Argument Argument #4 : Free trade would be ne if all other countries practiced free trade but that so long as they do not, the United States cannot afford to.

3. To solve the problems of welfare programs, the authors proposed two (2) essential components of reform. What are they? Component #1 : Reform the present welfare system by replacing the ragbag of specic programs with a single comprehensive program of income supplements in cash- a negative income tax linked to the positive income tax. Component #2 : Unwind Social Security while meeting present commitments and gradually requiring people to make their own arrangements for their own retirement.

4. The Friedmans discuss countries/governments that experienced hyperination at various times in history. List the countries/governments that were affected during the historical periods below. 1860s : 1. United States After World War I : 1. Russia 2. Germany. After World War II : 1. China 2. Brazil 1970s : 1. Chile 2. Argentina 5. ! I do not agree with the fair shares for all concept to calculate grades because if I work hard enough to earn an A in the class its not fair that I would get points taken away in order for them to be given to someone who did not do anything the whole semester and got horrible grades because of this. Not only is it unfair for my points to be taken away but it is also unfair that I would be getting an average C+ grade after working so hard. The other unfair thing is that how would you know if a student refuses to do any work because they know that they will pass either way. ! The way that this would differ from fair shares for all economically is that when you are giving up your income it depends on how much you are making. A person that is making more money does have to pay more but it equals to the same amount as a person who has a lower income would paying. Both people with a high income and a low income pay the same. It would not be fair if someone who earns a little amount of money would have to pay the same amount as someone who gets payed a lot more. The money taken out of incomes should be taken out according to a certain percentage, this way it can be fair. In my opinion I see this like tipping your waiter at a restaurant. Everyone is supposed to pay 15% and for someone who consumes more, according to their bill they are supposed to pay more than a person who did not consume as much. I believe this system makes it fair for everyone. If I support redistribution of income & wealth I dont think I also have to believe in the redistribution of academic grades because they are both different. One has to do with giving up more of your income because you get payed more when people who dont get payed as much also give up their income and the other is that you have to give up your good grades when you dont know if others in the class even put any effort in succeeding. It does not matter if other students may not have been given the same opportunities I have gotten, a lot of them could have but maybe they just dont want to work hard in the class and wont do anything because they are assured at least a C+ in the class. Every student should give up something not just the people who got a good grade. Reective Writing

! The reason that Free To Choose has helped me communicate effectively is because this book taught me a lot of things that I did not know about. It gave me a better understanding of the topic economy itself and of freedom. It talks about many other interesting subjects as well and it has given me the knowledge to be able to hold an intellectual conversation with someone. It has also given me different topics to talk about, I usually dont know much about the economy or anything that has happened throughout history with the economy, now that I do I am able to communicate more effectively with people who talk about this subject. ! The reason Free To Choose has helped me think critically is because since I did not know to much about this subject in general, once I started reading about it I started thinking more deeply about the topics of economy and freedom. I started asking myself not only why but how, when, where etc., about some of the different topics that are explained in this book. Since I understood the topic of economy much better I was able to think more outside the box instead of just reading the book fast without asking myself any questions.