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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 3, The Control of Money.

Multiple Choice Questions

1. What is one example of a negative externality?
(a) Private education.
(b) Lack of voting.
(c) Pollution.
(d) Welfare.

2. Friedman asserts that government is needed for the ______.
(a) "Rules of the game."
(b) "Rules of the system."
(c) "Rules of the road."
(d) "Rules of the citizens."

3. Who does Friedman state rejects the view that the government is the patron or master of the citizenry?
(a) The poor man.
(b) The educated man.
(c) The free man.
(d) The rich man.

4. In Friedman's opinion, what will check government power?
(a) A free market.
(b) A tripartite government.
(c) A strong judicial system.
(d) The people.

5. Friedman believes that government that has the power to do good, also has the power to do ______.
(a) Nothing.
(b) Wrong.
(c) Bad.
(d) Right.

Short Answer Questions

1. What does Friedman say can government not duplicate?

2. What is the basic problem of social life for Friedman?

3. According to Friedman, what is a necessary condition for political freedom?

4. What does Friedman believe needs protection in order for the freedom of the market to arise?

5. Which of the following cannot be justified by Friedman for government interventions?

(see the answer key)

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