Capitalism and Freedom Quiz | Eight Week Quiz D

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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 5, Fiscal Policy.

Multiple Choice Questions

1. Friedman believes that government that has the power to do good, also has the power to do ______.
(a) Right.
(b) Bad.
(c) Wrong.
(d) Nothing.

2. One question Friedman asks is how we can stop government from destroying ______.
(a) Citizens.
(b) Entertainment.
(c) Freedom.
(d) Taxes.

3. What does Friedman claim that governments abuse?
(a) The power to determine taxes.
(b) Ability to issue stocks.
(c) The trust of the people.
(d) Commodity standards.

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

5. Friedman uses the example of selling ______ to demonstrate a true global economy.
(a) Rice.
(b) Corn.
(c) Oil.
(d) Wheat.

Short Answer Questions

1. Which of the following can be justified by Friedman for government interventions?

2. In Chapter 3, what does Friedman provide a history of?

3. How are decisions, for Friedman, made where unanimity is a costly way of making decisions?

4. Friedman hypothesizes that the change from free market societies to economic controlled ones led classical liberals to worry that it would ______ political freedom.

5. Friedman's evidence suggests that for every $100 of government spending, a certain amount is added to income. How much?

(see the answer key)

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