View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 4, International and Financial Trade Arrangements.

Multiple Choice Questions

1. What is one way Friedman believes some people criticize markets?
(a) It limits people's choices.
(b) It hurts those in power.
(c) It gives people what they want.
(d) It inequitably distributes wealth.

2. For Friedman, where is the best place for power to be held?
(a) In the states.
(b) At the federal level.
(c) In the local community.
(d) In the economic system.

3. What is the term for currency not being traded for any amount of another currency?
(a) Inconvertible.
(b) Irreversible.
(c) None of the answers is correct.
(d) Unconvertible.

4. In Friedman's opinion, what should individuals be allowed to do?
(a) Pursue their own ends.
(b) Elect their own leaders.
(c) Choose their own religion.
(d) Print their own money.

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

Short Answer Questions

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

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

3. According to Friedman, whom does free trade benefit?

4. According to Friedman, what is the Federal Reserve lacking?

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

(see the answer key)

This section contains 262 words (approx. 1 page at 300 words per page) View a FREE sample