|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. What does Friedman assert is an example of an appropriate task for government?
(a) Providing for the social welfare.
(b) Determining price.
(c) Defining property rights.
(d) Regulating the job market.
2. According to Friedman, what is lost when foreign exchange is controlled by the government?
(a) Educational freedom.
(b) Economic freedom.
(c) Political freedom.
(d) Religious freedom.
3. What does Friedman believe is one drawback of the Federal Reserve having so much power?
(a) The Federal Reserve chairperson is elected and therefore subject to the whims of the public.
(b) When the Federal Reserve makes mistakes, the whole country suffers.
(c) The Federal Reserve has rules that are too strict to follow in order to make any real change.
(d) When the Federal Reserve does well, only a few profit.
4. How are decisions, for Friedman, made where unanimity is a costly way of making decisions?
(a) Executive decision.
(b) Decisions by committee.
(c) Majority rule.
(d) A system of checks and balances.
5. Friedman believes that economic control can lead to infringements on ______.
(a) Licensing requirements.
(b) Social welfare.
(d) International trade.
Short Answer Questions
1. Friedman's belief is that what cause would free trade substantially promote, both domestically and internationally?
2. According to Friedman, what conflicts with one another for men?
3. What is the term for currency not being traded for any amount of another currency?
4. What major event does Friedman strongly believe was a result of the government mishandling the money supply?
5. According to Friedman, what is a necessary condition for political freedom?
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