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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 13, Conclusion.

Multiple Choice Questions

1. Friedman believes that all of the following are appropriate for fiscal policy except ______.
(a) Fluctuating in spending based on the political climate.
(b) Spending based on community priorities.
(c) Planning for stable tax rates.
(d) Avoiding erratic changes in spending.

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

3. What is the major reason Friedman asserts why government intervention has had the opposite of the intended effects?
(a) People in power only seek political gains.
(b) People attempt to promote their own interests.
(c) People do not abide by the rules of the government.
(d) A wealthy few have made the majority of the decisions for the minority.

4. Originally, liberalism fought for freedom of thought, free-markets, free trade, constitutionalism, representative government, and ______.
(a) Fair trade.
(b) A welfare state.
(c) The rule of law.
(d) Rights of the poor.

5. One threat Friedman believes to the preservation and expansion of freedom is ______.
(a) The Kremlin.
(b) Cuba.
(c) Economic uncertainties.
(d) An uneducated workforce.

Short Answer Questions

1. In 1961, how much did the government spend on direct welfare payments and programs?

2. For Friedman, what is one major problem in interpreting the evidence on the distribution of income?

3. What example does Friedman give for one argument for registration?

4. What does Friedman believe coordinates individuals over vast distances and across all belief systems?

5. What does Friedman say can government not duplicate?

(see the answer key)

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