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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 7, Capitalism and Discrimination.

Multiple Choice Questions

1. Which of the following does Friedman dispute?
(a) The gold standard for backing money is good.
(b) A free market economic system works.
(c) The Central Bank holds too much power.
(d) Government should stay out of individual economic choices.

2. One of Friedman's claims for government involvement in education asserts that there are ______ to education.
(a) Extreme costs.
(b) Minimal costs.
(c) Negative externalities.
(d) Positive externalities.

3. Friedman advocates the end of ______.
(a) Exchange rates.
(b) Capitalism.
(c) Export quotas.
(d) The free market.

4. Friedman's theory is that monetary exchange rates will allow trades across countries to ______ in accord with those rates.
(a) Stagnate.
(b) Decrease.
(c) Increase.
(d) Equilibrate.

5. In the market described by Friedman, exchanges between households are ______.
(a) Coerced.
(b) Voluntary.
(c) Unwilling.
(d) Obligatory.

Short Answer Questions

1. Friedman believes that economic control can lead to infringements on ______.

2. Friedman hypothesizes that the change from free market societies to economic controlled ones led classical liberals to worry that it would ______ political freedom.

3. According to Friedman, what cannot exist without a literate and informed population?

4. What does Friedman believe is one drawback of the Federal Reserve having so much power?

5. Friedman points out one idea that is often forgotten is that political and economic institutions have been ______.

(see the answer key)

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