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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 does Friedman use as an example of a use of government where individuals cannot consume individual amounts?
(a) National defense.
(b) Postal service.
(c) Education.
(d) Healthcare.

2. Friedman advocates that government should not be a master, but a/an ______.
(a) Instrument.
(b) Slave.
(c) Mechanism.
(d) Philosophy.

3. Friedman believes that free markets are not sufficient for political freedom since many countries demonstrate the possibility of ______.
(a) Dictatorial government.
(b) Economic freedom.
(c) Authoritarian capitalism.
(d) Laissez-faire markets.

4. Who does Friedman think should set exchange rates?
(a) The White House.
(b) No one, they should be allowed to fluctuate on their own.
(c) The International Monetary Fund.
(d) The Federal Reserve.

5. Which of the following does Friedman dispute?
(a) The gold standard for backing money is good.
(b) Government should stay out of individual economic choices.
(c) The Central Bank holds too much power.
(d) A free market economic system works.

Short Answer Questions

1. In Chapter 3, what does Friedman provide a history of?

2. According to Friedman, what is liberty's greatest enemy?

3. What does Friedman claim that governments abuse?

4. What is the term for currency not being traded for any amount of another currency?

5. Friedman asserts that government is needed for the ______.

(see the answer key)

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