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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. Friedman asserts that the Federal Reserve created the major contractions of the following years except______.
(a) 1926-27.
(b) 1920-21.
(c) 1937-38.
(d) 1929-33.

2. In Friedman's mind, why is centralization attractive to many?
(a) Streamlined services.
(b) Government can promote the public interest.
(c) Better pool of resources.
(d) Consolidation of power.

3. How are decisions, for Friedman, made where unanimity is a costly way of making decisions?
(a) Executive decision.
(b) Majority rule.
(c) Decisions by committee.
(d) A system of checks and balances.

4. In Friedman's opinion, what should individuals be allowed to do?
(a) Elect their own leaders.
(b) Choose their own religion.
(c) Print their own money.
(d) Pursue their own ends.

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

Short Answer Questions

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

2. What does Friedman claim that governments abuse?

3. Friedman states that government should be ______.

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

5. Friedman asserts that government restriction centralizes ______.

(see the answer key)

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