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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 10, The Distribution of Income.

Multiple Choice Questions

1. What term refers to the Federal Reserve's ability to produce more money than is deposited?
(a) Percent fulfillment banking.
(b) Reserve ability production.
(c) Fractional reserve banking.
(d) Overdraft protection.

2. Friedman states that ______ is a generator of inequality.
(a) Redistribution.
(b) Taxation.
(c) Social security.
(d) Unemployment.

3. Friedman theorizes that in extreme cases where parents don't pay for schooling, the government could provide a ______.
(a) Pass.
(b) Subsidy.
(c) Allowance.
(d) Discount.

4. What does Friedman claim that governments abuse?
(a) The trust of the people.
(b) The power to determine taxes.
(c) Commodity standards.
(d) Ability to issue stocks.

5. Friedman claims there is no connection between equal treatment and what?
(a) Equal rights.
(b) Equal opportunity.
(c) Equal shares of income.
(d) Equal protection.

Short Answer Questions

1. Friedman believes that the goddess of chance is ______.

2. What does Friedman advocate the abolition of in Chapter 10, The Distribution of Income?

3. Which of the following, for Friedman, is the most important factor for the Federal Reserve?

4. What major event does Friedman strongly believe was a result of the government mishandling the money supply?

5. One role of government argued by the New Deal was to ______.

(see the answer key)

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