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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 10, The Distribution of Income.

Multiple Choice Questions

1. What term refers to the Federal Reserve's ability to produce more money than is deposited?
(a) Overdraft protection.
(b) Fractional reserve banking.
(c) Percent fulfillment banking.
(d) Reserve ability production.

2. Friedman believes that vocational and professional schools should be totally ______ run.
(a) Governmentally.
(b) Privately.
(c) Publicly.
(d) Cooperatively.

3. What example does Friedman use to argue against the redistribution of wealth?
(a) Robinson Crusoe.
(b) The Swiss Family Robinson.
(c) Mark Twain.
(d) Davey Crockett.

4. Friedman theorizes that in extreme cases where parents don't pay for schooling, the government could provide a ______.
(a) Subsidy.
(b) Pass.
(c) Allowance.
(d) Discount.

5. What term refers to the argument for education that parents will not do best for their children?
(a) Employment.
(b) Paternalistic.
(c) Maternalistic.
(d) Sacrificial.

Short Answer Questions

1. What major event does Friedman strongly believe was a result of the government mishandling the money supply?

2. One role of government argued by the New Deal was to ______.

3. Friedman makes the distinction between education and ______.

4. What is the relationship between capitalism and the fraction of income paid for capital in countries?

5. Friedman states that ______ is a generator of inequality.

(see the answer key)

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