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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. According to Friedman, what is a necessary condition for political freedom?
(a) Fair trade.
(b) A high gross domestic product.
(c) Governmental regulation.
(d) Competitive capitalism.

2. Friedman advocates that government should not be a master, but a/an ______.
(a) Philosophy.
(b) Mechanism.
(c) Slave.
(d) Instrument.

3. What does Friedman believe needs protection in order for the freedom of the market to arise?
(a) Contracts.
(b) Religion.
(c) Government.
(d) Citizens.

4. According to Friedman, which of the following is the least bad?
(a) Private regulation.
(b) Public monopoly.
(c) Public regulation.
(d) Private monopoly.

5. In Friedman's analysis, what century is the historical exception to most men living in tyranny, servitude, and misery?
(a) 17th.
(b) 18th.
(c) 19th.
(d) 20th.

Short Answer Questions

1. According to Friedman, the market enables wide diversity, meaning power can be located in ______.

2. What is one example of a negative externality?

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

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

5. In Friedman's eyes, individual activities correspond to game players as the framework of law corresponds to______.

(see the answer key)

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