|Name: _________________________||Period: ___________________|
This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 13, Conclusion.
Multiple Choice Questions
1. What term refers to the Federal Reserve's ability to produce more money than is deposited?
(a) Reserve ability production.
(b) Overdraft protection.
(c) Fractional reserve banking.
(d) Percent fulfillment banking.
2. Friedman advocates that government should not be a master, but a/an ______.
3. Friedman's theory on government intervention is that government is needed to be what regarding disputes?
4. Which of the following does Friedman dispute?
(a) The Central Bank holds too much power.
(b) A free market economic system works.
(c) Government should stay out of individual economic choices.
(d) The gold standard for backing money is good.
5. According to Friedman, what is one problem with government stimulus during a recession?
(a) More often than not, inflation skyrockets.
(b) The stimulus is generally too small to jump-start the economy.
(c) The attempts often have a negative effect.
(d) The measures do not take effect until after the recession.
Short Answer Questions
1. Another threat for Friedman to the preservation and expansion of freedom is:
2. What effect has Friedman observed that minimum wage laws have had on poverty?
3. Friedman simply states that to alleviate poverty, we should have a program directed at ______.
4. What is the major reason Friedman asserts why government intervention has had the opposite of the intended effects?
5. According to Friedman, the market enables wide diversity, meaning power can be located in ______.
This section contains 316 words
(approx. 2 pages at 300 words per page)