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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 4, International and Financial Trade Arrangements.

Multiple Choice Questions

1. What does Friedman say can government not duplicate?
(a) The free market economic system.
(b) An international monitoring system.
(c) The power of local control.
(d) The creativity of the individual.

2. For Friedman, what is something that when privately owned can be used if the price is right?
(a) Educational systems.
(b) Taxes.
(c) Media.
(d) Political campaigns.

3. Who does Friedman think should set exchange rates?
(a) The Federal Reserve.
(b) The International Monetary Fund.
(c) No one, they should be allowed to fluctuate on their own.
(d) The White House.

4. In Friedman's time, what was illegal to buy or sell?
(a) Gold.
(b) Alcohol.
(c) Silver.
(d) Ethanol.

5. What does Friedman assert is an example of an appropriate task for government?
(a) Determining price.
(b) Regulating the job market.
(c) Providing for the social welfare.
(d) Defining property rights.

Short Answer Questions

1. Friedman believes that free markets are not sufficient for political freedom since many countries demonstrate the possibility of ______.

2. What is the term for currency not being traded for any amount of another currency?

3. Friedman's theory on government intervention is that government is needed to be what regarding disputes?

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

5. Which of the following cannot be justified by Friedman for government interventions?

(see the answer key)

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