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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. A common misunderstanding of economic freedom, according to Friedman, is that it emphasizes ______.
(a) Materialism.
(b) Prosperity.
(c) Socialism.
(d) Wealth.

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

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

4. For Friedman, what is an all-embracing ethic?
(a) Education.
(b) Religion.
(c) Freedom.
(d) Government.

5. According to Friedman, what is the Federal Reserve lacking?
(a) A Magna Carta of sorts.
(b) A Declaration of Independence of sorts.
(c) A Rosetta Stone of sorts.
(d) A Constitution of sorts.

Short Answer Questions

1. What is one way Friedman believes some people criticize markets?

2. Which of the following does Friedman dispute?

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

4. In Friedman's opinion, what will check government power?

5. By Friedman's account, the market permits unanimity without ______.

(see the answer key)

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