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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 is the basic problem of social life for Friedman?
(a) How to provide for entertainment opportunities.
(b) How to coordinate the economic activities of large numbers of individuals.
(c) How to distribute wealth equitably.
(d) How to tax and provide responsively for the people.

2. Friedman points out one idea that is often forgotten is that political and economic institutions have been ______.
(a) Suppressed.
(b) Autonomic.
(c) Free.
(d) Unfree.

3. What does Friedman claim that governments abuse?
(a) Commodity standards.
(b) The trust of the people.
(c) The power to determine taxes.
(d) Ability to issue stocks.

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

5. Friedman's theory on government intervention is that government is needed to be what regarding disputes?
(a) Groundskeeper.
(b) Fan.
(c) Announcer.
(d) Umpire.

Short Answer Questions

1. Friedman advocates that government should not be a master, but a/an ______.

2. Friedman uses the example of selling ______ to demonstrate a true global economy.

3. Friedman believes that economic control can lead to infringements on ______.

4. Friedman believes that government that has the power to do good, also has the power to do ______.

5. What does Friedman believe is an appropriate rate of increase for the Federal Reserve?

(see the answer key)

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