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

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

3. What does Friedman believe is one drawback of the Federal Reserve having so much power?
(a) The Federal Reserve chairperson is elected and therefore subject to the whims of the public.
(b) When the Federal Reserve makes mistakes, the whole country suffers.
(c) When the Federal Reserve does well, only a few profit.
(d) The Federal Reserve has rules that are too strict to follow in order to make any real change.

4. Friedman hypothesizes that the change from free market societies to economic controlled ones led classical liberals to worry that it would ______ political freedom.
(a) Strengthen.
(b) Bolster.
(c) Undermine.
(d) Weaken.

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

Short Answer Questions

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

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

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

4. How are decisions, for Friedman, made where unanimity is a costly way of making decisions?

5. What does Friedman say can government not duplicate?

(see the answer key)

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