View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 5, Fiscal Policy.

Multiple Choice Questions

1. 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) Majority rule.
(d) Executive decision.

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

3. What is one example of a negative externality?
(a) Pollution.
(b) Private education.
(c) Lack of voting.
(d) Welfare.

4. One question Friedman asks is how we can stop government from destroying ______.
(a) Entertainment.
(b) Taxes.
(c) Freedom.
(d) Citizens.

5. Who does Friedman state rejects the view that the government is the patron or master of the citizenry?
(a) The educated man.
(b) The free man.
(c) The poor man.
(d) The rich man.

Short Answer Questions

1. In Friedman's mind, why is centralization attractive to many?

2. Friedman defines a country as a collection of ______.

3. One argument for government spending that Friedman refutes is that it will reduce what?

4. Which term refers to the government stimulating spending?

5. According to Friedman, what is a necessary condition for political freedom?

(see the answer key)

This section contains 226 words (approx. 1 page at 300 words per page) View a FREE sample