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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 11, Social Welfare Measures.

Multiple Choice Questions

1. Which of the following can be justified by Friedman for government interventions?
(a) Property rights.
(b) Subsidizing farm production.
(c) The draft.
(d) Minimum wage.

2. What does Friedman believe is an appropriate rate of increase for the Federal Reserve?
(a) 5%-7%.
(b) 1%-3%.
(c) 3%-5%.
(d) None. That is not a goal of the Federal Reserve.

3. Friedman claims there is no connection between equal treatment and what?
(a) Equal protection.
(b) Equal opportunity.
(c) Equal shares of income.
(d) Equal rights.

4. Friedman argues against the theory that $100 in government spending will increase income by ______.
(a) $100.
(b) $150.
(c) $300.
(d) $50.

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

Short Answer Questions

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

2. By Friedman's account, the market permits unanimity without ______.

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

4. How many problems with monopolies does Friedman describe?

5. A common misunderstanding of economic freedom, according to Friedman, is that it emphasizes ______.

(see the answer key)

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