Study Guide to Man, Economy, and State with Power and Market

Chapter 12: The Economics of Violent Intervention in the Market 171
Study Questions
1. Give an example of each of the three types of
interventions (pp. 877–78).
2. Why does Rothbard say voluntary exchanges
always increase utility? Doesn’t the displaced
businessman lose when his product is rendered
obsolete by the competition? (pp. 882–83)
3. Can some private parties gain from a triangular
intervention?
4. What is Gresham’s Law? (p. 899)
5. Give some examples of product control (pp.
900–07).
6. If domestic competitors can eliminate the benefits
from tariffs (p. 906), why do firms clamor
for protectionist measures?
7. Summarize the objections to the “cost principle”
in taxation (pp. 922–23).
8. Summarize the objections to the “benefit principle”
in taxation (pp. 923–24).
9. Rothbard argues that a tax cannot be shifted
forward because none of the determinants of
price (supply and demand for money, etc.) has