|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 5, Fiscal Policy.
Multiple Choice Questions
1. What is one way Friedman believes some people criticize markets?
(a) It hurts those in power.
(b) It gives people what they want.
(c) It limits people's choices.
(d) It inequitably distributes wealth.
2. Friedman believes that economic control can lead to infringements on ______.
(a) Social welfare.
(b) Licensing requirements.
(c) International trade.
3. According to Friedman, the market enables wide diversity, meaning power can be located in ______.
(a) The hands of a few.
(b) Small pockets of individual actors.
(c) The hands of many.
(d) Large pockets with limited interests.
4. Which of the following can be justified by Friedman for government interventions?
(a) Minimum wage.
(b) The draft.
(c) Property rights.
(d) Subsidizing farm production.
5. Instead of government spending, what does Friedman advocate the government use to stabilize the economy?
(b) Health care.
Short Answer Questions
1. According to Friedman, what is the Federal Reserve lacking?
2. Which term refers to the government stimulating spending?
3. Originally, liberalism fought for freedom of thought, free-markets, free trade, constitutionalism, representative government, and ______.
4. What does Friedman prefer when it comes to exchange rates?
5. What does Friedman believe will markets do over time to monopolies?
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