Below you can find a test in which there are 10 different questions and two different answers referring to each question. There is also a number of points beside possible answers. And there is also the analysis below. There are three different categories giving a description wheater you are a classical liberal (libertarian) or not. Calculate the amount of points achieved and see where you stand?
P.S.: Questions are divided into two parts. The first part examines questions connected with the level of tolerance of economic freedom while the second part of the group of questions examines the level of tolerance of personal, civil and political liberties. And don't be afraid of the title, even if you're not an economist, it is highly desirable to take this.
Question No.1;
Consider an economy in transition where 35 percent of the economy is still in the hands of the government. The election period arrived and the libertarian party surprisingly won the elections. Among the very first reform proposals is the privatization of the financial sector, including the insurance and banking sector. The Minister of Finance suggests that foreign strategic partners are according to the observations and recent studies the most suitable option for the recovery of the financial sector of the economy. But there is also a strong presence of interest groups and falsified intellectuals with strong media influence who fanatically oppose the privatization. The Minister of Finance and the Prime Minister continue the process of privatization despite enormous pressures from various interest groups. Have they gone into the right direction?
(a) YES [2 points] (b) NO [0 points]
Question No.2;
In the next step, the government intends to reform the labor market in the way of greater flexibility in order to cut the tax burden which hampers the economy. The newest reform proposal by the government includes easier, faster and cheaper hiring and firing of workers. The most striking ingredient of the reform is the abolishment of collective bargaining between the federation of employers and labor unions so that labor market is given a full degree of liberty. There is also no more legislative protection of trade unions and employer federation. And there is also a reform proposal which is going in the line of labor market's internationalization. Of course, trade unions strongly reject the reform proposal. They even promise to trigger strikes on the street. Shall a government ignore the pressures and reform the labor market?
(a) YES [2 points] (b) NO [0 points]
Question No.3;
Consider an economy in which the competition in health care sector is heavily limited. The government continues imposing liberal economic reforms. In this case, the government plans to cut licensing proceedures and allow private competitors to challenge services offered by a public health-care. In the next step, the government will do the best of its ability to privatize health care colleges and make them more flexible through the elimination or enrollment restrictions. It will also privatize a majority of subsidized health care services through which individuals contribute premiums for health-care services through voluntary free exchange insurance contracts. And finally, the government plans to abolish monopolized pharmacy chamber which currently holds monopoly on drug supply and licensing procedures thereof. It intends to liberalize the drug market completely by letting private pharmacies enter the market. Of course, interest groups in health-care sector strongly oppose to this particular proposal. But the government doesn't allow them to tolerate their special interests isolated from the market. Is the government going in the right direction?
(a) YES [2 points] (b) NO [0 points]
Question No.4;
There is a sudden price increase on the market. The price of the most frequently consumed automobile gas has increased significantly but it has been predicted that the price will soon settle back to the cooling of global gas markets, currently facing a supply shortage but a heavily increased demand particular on Chinese and Indian side. The government is suddenly afraid of the situation and intends to buy a majority of shares in the biggest oil supplier of the country in order to be able to impose price controls through robust and discretionary decision making. According to your opinion, is the government going in the right direction?
(a) YES [0 points] (b) NO [2 points]
Question No.5;
Assume an economy in which the inflation rate is currently 6 percent and the monetary policy is highly discretionary. Exchange rate regime is not flexible but used as a tool on which the monetary policy of the central bank is based. There is no free floating exchange rate regime, the government is neither planning to change it in order to ensure long-term monetary stabilization; Comparatively high level of inflation rate is a strong threat to the monetary progress of this economy. An advisory board, i.e. the council of economic advisers, suggests shifting to free floating exchange rate regime. It also sends government an appeal to stop directly supporting export companies through discretionary exchange rate fluctuations as a means of indirect subsidy to companies. The advisory board also warns the government about the rapid rate of monetary aggregates without the consideration of "money supply rule". The growth of quantity of money in circulation exceeds the growth of the GDP for three times. The advisory board also sets a proposal of inflation targeting regime through which the policy of inflation targeting is publicly announced and set as an objective. Did the advisory board give government a flexible set of solutions in order to curb the inflation?
(a) YES [2 points] (b) NO [0 points]
Question No.6;
Marihuana and other soft drugs should be immediately legalized.
(a) Agree [2 points] (b) Disagree [o points]
Question No.7;
Prostitution should be made legal and there should be no restrictions on this kind of market activity.
(a) Agree [2 points] (b) Disagree [0 points]
Question No.8;
Abortion should not be a matter of free determination without the interference of the government. Hence, abortion should be punished and made illegal while women, if abort the child, should be sentenced.
(a) Agree [0 points] (b) Disagree [2 points]
Question No.9;
People from other countries, from all around the world, should be given an opportunity to come to Slovenia and live here if they want and thus we let a "melting pot" society to live. Hence, English should be made the first language together with Slovene to enjoy equal status. Slovenia should be promoted as a friendly land for foreigners from all around the globe.
(a) Agree [2 points] (b) Disagree [0 points]
Question No.10;
The government should simply legalize the homosexual relationship. We don't need a separate treatment of marriage. Hence, the homosexuals should be allowed to adopt children while they should not be treated separately from other citizens since living your own life and making your own decisions is inalienable and nobody has a right to intervene individual lives.
(a) Agree [2 points] (b) Disagree [0 points]
Criteria:
20 points
Congratulations! You have confirmed yourself as a truly classical liberal economist and libertarian-minded individual.
19-16 points
Well done! You mostly support liberal ("laissez faire") economic and social policy while you still have doubts on several issues involving personal or economic point of view.
16-0 points
You still have to work hard on letting libertarian economic and personal paradigm come to your mind. You're either too conservative or too leftist to be noted a libertarian. You seem to dislike "laissez-faire" economic policy or liberal attitudes towards individual liberty. However, sorry but you currently cannot be labelled a "classical liberal", i.e. libertarian.
I hope you enjoyed taking this test.
*Merry Christmas!
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