|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Friedman believes that economic control can lead to infringements on ______.
(a) Social welfare.
(b) International trade.
(c) Licensing requirements.
2. Friedman believes that free markets are not sufficient for political freedom since many countries demonstrate the possibility of ______.
(a) Laissez-faire markets.
(b) Authoritarian capitalism.
(c) Dictatorial government.
(d) Economic freedom.
3. What does Friedman believe will markets do over time to monopolies?
(a) Make them obsolete.
(b) Break them up.
(c) Strengthen them.
(d) Separate them slowly.
4. What term refers to the argument for education that parents will not do best for their children?
5. What does Friedman say can government not duplicate?
(a) An international monitoring system.
(b) The power of local control.
(c) The creativity of the individual.
(d) The free market economic system.
6. Friedman's belief is that what cause would free trade substantially promote, both domestically and internationally?
(a) Currency exchange.
(b) Political power.
7. By Friedman's account, the market permits unanimity without ______.
8. What does Friedman assert is an example of an appropriate task for government?
(a) Determining price.
(b) Regulating the job market.
(c) Providing for the social welfare.
(d) Defining property rights.
9. Originally, liberalism fought for freedom of thought, free-markets, free trade, constitutionalism, representative government, and ______.
(a) The rule of law.
(b) Rights of the poor.
(c) Fair trade.
(d) A welfare state.
10. Friedman defines a country as a collection of ______.
11. In Chapter 3, what does Friedman provide a history of?
(a) British colonialism.
(b) The Federal Reserve System.
(c) American monetary policy.
(d) World War I.
12. Friedman believes that vocational and professional schools should be totally ______ run.
13. A key component of the government spending is the ______.
(a) Reduction effect.
(b) Multiplier effect.
(c) Externality effect.
(d) Substitution effect.
14. Friedman asserts that government restriction centralizes ______.
15. Friedman points out one idea that is often forgotten is that political and economic institutions have been ______.
Short Answer Questions
1. Friedman's theory on government intervention is that government is needed to be what regarding disputes?
2. Friedman's theory is that monetary exchange rates will allow trades across countries to ______ in accord with those rates.
3. According to Friedman, what is the Federal Reserve lacking?
4. Which of the following, for Friedman, is the most important factor for the Federal Reserve?
5. Friedman believes that one governmental action that is justifiable is to set a ______ education level.
This section contains 411 words
(approx. 2 pages at 300 words per page)