Mid-Book Test - Easy
|Name: _____________________________||Period: ___________________________|
This quiz consists of 15 multiple choice questions and 5 short answer questions.
Multiple Choice Questions
1. Friedman's theory on government intervention is that government is needed to be what regarding disputes?
2. Friedman's belief is that what cause would free trade substantially promote, both domestically and internationally?
(a) Currency exchange.
(d) Political power.
3. Friedman believes that government that has the power to do good, also has the power to do ______.
4. Friedman believes that one governmental action that is justifiable is to set a ______ education level.
5. What is the basic problem of social life for Friedman?
(a) How to distribute wealth equitably.
(b) How to coordinate the economic activities of large numbers of individuals.
(c) How to provide for entertainment opportunities.
(d) How to tax and provide responsively for the people.
6. Past and current definitions of liberalism are the same with respect to ______.
(a) Civil freedoms and democracy.
(b) Paternalism and individualism.
(c) Distribution of wealth and the welfare state.
(d) Free markets and the rule of law.
7. One of Friedman's claims for government involvement in education asserts that there are ______ to education.
(a) Negative externalities.
(b) Minimal costs.
(c) Extreme costs.
(d) Positive externalities.
8. According to Friedman, what is one problem with government stimulus during a recession?
(a) The measures do not take effect until after the recession.
(b) The stimulus is generally too small to jump-start the economy.
(c) More often than not, inflation skyrockets.
(d) The attempts often have a negative effect.
9. Friedman theorizes that in extreme cases where parents don't pay for schooling, the government could provide a ______.
10. In Friedman's opinion, what should individuals be allowed to do?
(a) Elect their own leaders.
(b) Print their own money.
(c) Pursue their own ends.
(d) Choose their own religion.
11. According to Friedman, what cannot exist without a literate and informed population?
(a) Democratic societies.
(b) First world countries.
(c) A progressive political system.
(d) A well-armed militia.
12. According to Friedman, the market enables wide diversity, meaning power can be located in ______.
(a) Small pockets of individual actors.
(b) Large pockets with limited interests.
(c) The hands of a few.
(d) The hands of many.
13. What does Friedman believe will become self-regulating?
(a) The World Bank.
(b) Exchange rates.
(c) The gold standard.
(d) Monetary stocks.
14. Which term describes the purpose of federal spending?
(b) "Balance wheel."
(c) "Balance beam."
(d) None of the answers is correct.
15. Friedman states that government should be ______.
(d) Held accountable.
Short Answer Questions
1. Friedman's theory is that monetary exchange rates will allow trades across countries to ______ in accord with those rates.
2. Friedman points out one idea that is often forgotten is that political and economic institutions have been ______.
3. In Chapter 3, what does Friedman provide a history of?
4. One role of government argued by the New Deal was to ______.
5. What does Friedman believe is an appropriate rate of increase for the Federal Reserve?
This section contains 492 words
(approx. 2 pages at 300 words per page)