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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 hurts those in power.
(b) It limits people's choices.
(c) It gives people what they want.
(d) It inequitably distributes wealth.

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

3. Friedman's theory is that monetary exchange rates will allow trades across countries to ______ in accord with those rates.
(a) Decrease.
(b) Increase.
(c) Equilibrate.
(d) Stagnate.

4. What does Friedman say can government not duplicate?
(a) The power of local control.
(b) An international monitoring system.
(c) The creativity of the individual.
(d) The free market economic system.

5. In Chapter 3, what does Friedman provide a history of?
(a) British colonialism.
(b) The Federal Reserve System.
(c) American monetary policy.
(d) World War I.

Short Answer Questions

1. What does Friedman assert is an example of an appropriate task for government?

2. Originally, liberalism fought for freedom of thought, free-markets, free trade, constitutionalism, representative government, and ______.

3. In the market described by Friedman, exchanges between households are ______.

4. What does Friedman believe will markets do over time to monopolies?

5. A major point for Friedman is that politics and economics are not ______.

(see the answer key)

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