Name: _________________________ | Period: ___________________ |
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Friedman believes that government that has the power to do good, also has the power to do ______.
(a) Right.
(b) Nothing.
(c) Bad.
(d) Wrong.
2. What does Friedman believe will become self-regulating?
(a) Monetary stocks.
(b) The gold standard.
(c) The World Bank.
(d) Exchange rates.
3. What does Friedman use as an example of a use of government where individuals cannot consume individual amounts?
(a) Education.
(b) Healthcare.
(c) National defense.
(d) Postal service.
4. The original balancing thought is based on whose economic philosophy?
(a) Keynes.
(b) Smith.
(c) Krugman.
(d) Marx.
5. According to Friedman, what is the Federal Reserve lacking?
(a) A Declaration of Independence of sorts.
(b) A Magna Carta of sorts.
(c) A Constitution of sorts.
(d) A Rosetta Stone of sorts.
6. In Friedman's analysis, what century is the historical exception to most men living in tyranny, servitude, and misery?
(a) 18th.
(b) 20th.
(c) 19th.
(d) 17th.
7. Friedman theorizes that in extreme cases where parents don't pay for schooling, the government could provide a ______.
(a) Subsidy.
(b) Discount.
(c) Pass.
(d) Allowance.
8. According to Friedman, which of the following is the least bad?
(a) Public monopoly.
(b) Public regulation.
(c) Private regulation.
(d) Private monopoly.
9. What is the name of the system with the purpose of regulating monetary policy between leading countries?
(a) The World Bank System.
(b) The Gold Standard System.
(c) The Bretton Woods System.
(d) The International Monetary System.
10. For Friedman, where is the best place for power to be held?
(a) In the economic system.
(b) At the federal level.
(c) In the local community.
(d) In the states.
11. In Friedman's time, what was illegal to buy or sell?
(a) Ethanol.
(b) Alcohol.
(c) Gold.
(d) Silver.
12. Friedman defines a country as a collection of ______.
(a) Individuals.
(b) Ideals.
(c) Citizens.
(d) Leaders.
13. What caused all the major nations to abandon the gold standard?
(a) The Great Depression.
(b) Decline in the value of gold.
(c) World War I.
(d) World War II.
14. One solution Friedman proposes is to give parents ______ for schooling.
(a) Vouchers.
(b) Tokens.
(c) Credits.
(d) Coupons.
15. What major event does Friedman strongly believe was a result of the government mishandling the money supply?
(a) None of the answers is correct.
(b) The Great Depression.
(c) Prohibition.
(d) World War I.
Short Answer Questions
1. The thought that the best use of government spending would be on useless projects is known as ______.
2. Which of the following cannot be justified by Friedman for government interventions?
3. Which of the following, for Friedman, is the most important factor for the Federal Reserve?
4. What does Friedman prefer when it comes to exchange rates?
5. According to Friedman, what is one problem with government stimulus during a recession?
This section contains 465 words (approx. 2 pages at 300 words per page) |