Veronica Gomez-Quintero

Econ 1740
Eportfolio Assignment
Part 1
Free or Equal Questions While watching Free or Equal, answer the questions as
follows: Fill-in-the-blank questions - Use the precise language from the video. Short
answer questions - Summarize the concepts in your own words. Question 10 - Analyze
the proposal & provide your unique perspective. You do not need to use the same
format as shown below (with boxes). Use a format which works best for you.

1. If the government gives everybody the same freedom to work and reap the rewards,
some will do better than others. The result will be equality of opportunity, but not
equality of outcome.
Answer
Answer #1 Equality Of Opportunity
Answer #2 Equality Of Outcome
2. Immigrants who arrived in the late-1800s/early-1900s found that America was truly a
land of opportunity. Describe the factors these immigrants encountered which helped
them thrive.
Factors
Factors which helped immigrants that arrived in the land of opportunity were hope, hard
work, enterprise, and ability. Not many rules and regulations existed.
3. Professor Friedman referred to Hong Kong as the freest market in the world.
Summarize how he described the free market.
Free Market
Free market allows people to go into and leave any industry they choose to. People are
allowed to trade with whomever they choose, to buy in the wherever they choose, to sell
in the dearest market around the world. Taxes lowered, regulations slashed, absence of
tariffs. The market is allowed to operate and not told what to do. Free competition.
4. Human and political freedom has never existed (and cannot exist) without a large
measure of economic freedom. Those of us who have been so fortunate as to have
been born in a free society tend to take freedom for granted, to regard it as the natural
state of mankind. It is not. It is a rare and precious thing.
Answer #1 economic freedom

Answer #2 take freedom for granted

Answer #3 natural state of mankind

5. Explain how the lead pencil & the smart phone are examples of invisible hands.
Invisible Hands
Adam Smith introduced the idea of the invisible which guides the economy. Many
invisible hands must take part in building both the pencils and the smart phone. Both
items are created by machines but the machines are created by human beings.
Different components of smart phones are created in places all around the world. The
operation of the free market is so essential not only to promote productive efficiency but
even more, to foster harmony and peace among the peoples of the world.

6. Explain the concept of creative destruction as described in the Free or Equal video.
Creative Destruction
In order to succeed in different ways, we must destruct old habits or patterns and create
new ones. We must be creative in creating these new plans.

7. The idea that the economic race should be so arranged that everybody ends at the
finish line at the same time, rather than that everyone starts at the beginning line at the
same time. This concept raises a very serious problem for freedom. It is clearly in
conflict with it, since it requires that the freedom of some be restricted, in order to
provide the greater benefits to others.
Answer #1 freedom
Answer #2 be restricted
Answer #3 greater benefits to others

8. Our economic system gave us Henry Ford, Thomas Alva Edison, Bill Gates & other
very successful entrepreneurs. These entrepreneurs all went in with their eyes open,
knew what they were doing & win or lose, we (society) benefited from their willingness
to take a chance. If we did not allow these successful entrepreneurs to become
incredibly rich, we would be more equal. But, would we be better off? If entrepreneurs
did not think that a possible reward for all the sacrifices they make, all their hard work,
all the risk they take is a lot of wealth, then they might do something else instead. In that

case, we would not have the goods, services and technologies(they created) that make
our lives better.
Answer #1 from their willingness to take a chance
Answer #2 sacrifices they make
Answer #3 their hard work
Answer #4 the risk they take

9. As Milton Friedman said, The society that puts equality before freedom will end up
with neither. The society that puts freedom before equality will end up with a great
measure of both.
Answer #1 end up with neither
Answer #2 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.
1. Would you approve of this method in calculating your final grade? Why or why not?
2. Would this differ from fair shares for all economically? Why or why not? 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.
3. Address the above questions in your own words, in a minimum of 3 paragraphs.
I am opposed to this method of grading. I dont believe that I would would work hard or
exceed my own expectations if I knew that I would receive a grade of C regardless of
my effort in the class or coursework. I believe that the incentive that exists in this
scenario is what drives me to study more, work harder and learn. This may be worth
more to one person than the other person. The person or student that values the grade

of an A more, this student will work harder, this student will force themselves to
achieve more, this student without a doubt will push themselves to succeed in their goal
of achieving a higher grade. The student who does not value the grade as much will not
put as much effort into achieving a higher grade. Each student should receive the
appropriate grade according to their level of effort. The grade they have earned. That
incentive and reward fuels many individuals, including myself. I fear that a guaranteed
C would demotivate students and myself.
I do not believe this differs greatly from sharing wealth or fair shares for all. In both
cases, a person that has excelled academically or excelled financially is being punished
for that success. The person is not being rewarded according for effort or success, this
person would no longer be incentivized to produce more. In fact, it is more like the
person is being punished for succeeding or excelling financially. They are punished by
having their wealth or success taken away. I personally have a huge problem with this
thought process. I believe that each individual must push themselves to succeed
regardless of what advantages or disadvantages they have. I believe that it is wrong to
remove the rewards and incentives that exist for hard work and dedication.
Rewards and incentives do require a delicate balance. Unfortunately, in a world that has
so many economic incentives and rewards, many people will be motivated to lie, cheat,
steal and manipulate the system whenever possible in order to gain more wealth.
Greed. Unfortunately, greed will come hand in hand with that incentive and reward. This
is the lesser risk because without this incentive and reward, entrepreneurs, inventors
and anyone else would not have incentive to invent, innovate or create new technology,
new inventions, or create the impossible. This is the drive, vision and creativity that we
so desperately need to create, grow and exceed our own expectations. A lack of reward
or incentive stunts or growth and inhibits our possibilities.