|Name: _________________________||Period: ___________________|
This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.
Multiple Choice Questions
1. According to Friedman, what is lost when foreign exchange is controlled by the government?
(a) Educational freedom.
(b) Economic freedom.
(c) Political freedom.
(d) Religious freedom.
2. One of Friedman's claims for government involvement in education asserts that there are ______ to education.
(a) Minimal costs.
(b) Positive externalities.
(c) Extreme costs.
(d) Negative externalities.
3. According to Friedman, what is a necessary condition for political freedom?
(a) Governmental regulation.
(b) A high gross domestic product.
(c) Competitive capitalism.
(d) Fair trade.
4. What does Friedman believe will markets do over time to monopolies?
(a) Make them obsolete.
(b) Break them up.
(c) Separate them slowly.
(d) Strengthen them.
5. Friedman's belief is that what cause would free trade substantially promote, both domestically and internationally?
(c) Political power.
(d) Currency exchange.
Short Answer Questions
1. According to Friedman, what conflicts with one another for men?
2. In the market described by Friedman, exchanges between households are ______.
3. Friedman asserts that government restriction centralizes ______.
4. Friedman believes that government that has the power to do good, also has the power to do ______.
5. Friedman asserts that the Federal Reserve created the major contractions of the following years except______.
Short Essay Questions
1. Explain the price system as described by Friedman.
2. What examples does Friedman give of appropriate roles of government in a free society?
3. What is the multiplier effect?
4. Explain the externalities argument that Friedman describes for government involvement in education
5. What are Friedman's recommendations in order for stocks to become self-regulating?
6. What examples does Friedman give of when the Federal Reserve System mismanaged the money supply?
7. Explain Friedman's voucher proposal.
8. Explain the paternalistic argument that Friedman describes for government involvement in education.
9. What is fiscal policy?
10. What reason does Friedman refute for government spending?
This section contains 612 words
(approx. 3 pages at 300 words per page)