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

Multiple Choice Questions

1. For Friedman, what is something that when privately owned can be used if the price is right?
(a) Political campaigns.
(b) Media.
(c) Educational systems.
(d) Taxes.

2. In Friedman's time, what was illegal to buy or sell?
(a) Gold.
(b) Ethanol.
(c) Silver.
(d) Alcohol.

3. Which term describes the purpose of federal spending?
(a) "Seesaw."
(b) None of the answers is correct.
(c) "Balance beam."
(d) "Balance wheel."

4. According to Friedman, whom does free trade benefit?
(a) Neither trading country.
(b) The poorer trading country.
(c) Both trading countries.
(d) The wealthier trading country.

5. Friedman believes that economic control can lead to infringements on ______.
(a) International trade.
(b) Social welfare.
(c) Licensing requirements.
(d) Liberties.

Short Answer Questions

1. Instead of government spending, what does Friedman advocate the government use to stabilize the economy?

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

3. One question Friedman asks is how we can stop government from destroying ______.

4. The original balancing thought is based on whose economic philosophy?

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

(see the answer key)

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