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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 caused all the major nations to abandon the gold standard?
(a) Decline in the value of gold.
(b) The Great Depression.
(c) World War II.
(d) World War I.

2. What does Friedman assert is an example of an appropriate task for government?
(a) Regulating the job market.
(b) Providing for the social welfare.
(c) Defining property rights.
(d) Determining price.

3. Friedman defines a country as a collection of ______.
(a) Ideals.
(b) Leaders.
(c) Individuals.
(d) Citizens.

4. Which of the following can be justified by Friedman for government interventions?
(a) Minimum wage.
(b) The draft.
(c) Property rights.
(d) Subsidizing farm production.

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

Short Answer Questions

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

2. One question Friedman asks is how we can stop government from destroying ______.

3. Friedman asserts that government restriction centralizes ______.

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

5. Who does Friedman state rejects the view that the government is the patron or master of the citizenry?

(see the answer key)

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