|Name: _________________________||Period: ___________________|
This test consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Which of the following cannot be justified by Friedman for government interventions?
(a) Vouchers for education.
(c) Free speech.
(d) Public parks.
2. Who does Friedman think should set exchange rates?
(a) No one, they should be allowed to fluctuate on their own.
(b) The International Monetary Fund.
(c) The Federal Reserve.
(d) The White House.
3. Besides enforcing contracts, what one other thing does Friedman say government should do?
(a) Protect against external threats.
(b) Regulate commerce.
(c) Provide for public transportation.
(d) Secure a country's borders.
4. Friedman advocates the end of ______.
(a) Exchange rates.
(b) Export quotas.
(c) The free market.
5. The original balancing thought is based on whose economic philosophy?
6. Friedman argues against the theory that $100 in government spending will increase income by ______.
7. What is the basic problem of social life for Friedman?
(a) How to tax and provide responsively for the people.
(b) How to coordinate the economic activities of large numbers of individuals.
(c) How to provide for entertainment opportunities.
(d) How to distribute wealth equitably.
8. How are decisions, for Friedman, made where unanimity is a costly way of making decisions?
(a) Decisions by committee.
(b) A system of checks and balances.
(c) Executive decision.
(d) Majority rule.
9. One argument for government spending that Friedman refutes is that it will reduce what?
10. What does Friedman prefer when it comes to exchange rates?
(a) Floating exchange rates.
(b) Rising exchange rates?
(c) Sinking exchange rates.
(d) Hovering exchange rates.
11. What does Friedman believe needs protection in order for the freedom of the market to arise?
12. Friedman believes that one governmental action that is justifiable is to set a ______ education level.
13. For Friedman, what is something that when privately owned can be used if the price is right?
(a) Educational systems.
(c) Political campaigns.
14. Which term describes the purpose of federal spending?
(a) "Balance beam."
(b) None of the answers is correct.
(c) "Balance wheel."
15. Which type of education does Friedman not advocate the government paying for?
Short Answer Questions
1. In Friedman's analysis, what century is the historical exception to most men living in tyranny, servitude, and misery?
2. In Friedman's mind, why is centralization attractive to many?
3. Friedman advocates that government should not be a master, but a/an ______.
4. What does Friedman believe is an appropriate rate of increase for the Federal Reserve?
5. Which of the following does Friedman dispute?
This section contains 447 words
(approx. 2 pages at 300 words per page)