|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 4, International and Financial Trade Arrangements.
Multiple Choice Questions
1. In Friedman's opinion, what will check government power?
(a) The people.
(b) A strong judicial system.
(c) A free market.
(d) A tripartite government.
2. What does Friedman believe needs protection in order for the freedom of the market to arise?
3. What is one example of a negative externality?
(b) Lack of voting.
(d) Private education.
4. What is the basic problem of social life for Friedman?
(a) How to tax and provide responsively for the people.
(b) How to coordinate the economic activities of large numbers of individuals.
(c) How to provide for entertainment opportunities.
(d) How to distribute wealth equitably.
5. Friedman believes that free markets are not sufficient for political freedom since many countries demonstrate the possibility of ______.
(a) Authoritarian capitalism.
(b) Laissez-faire markets.
(c) Dictatorial government.
(d) Economic freedom.
Short Answer Questions
1. Friedman's theory is that monetary exchange rates will allow trades across countries to ______ in accord with those rates.
2. Friedman asserts that current liberalism is tied to the state management of ______.
3. Besides enforcing contracts, what one other thing does Friedman say government should do?
4. According to Friedman, what is liberty's greatest enemy?
5. Friedman's belief is that what cause would free trade substantially promote, both domestically and internationally?
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