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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 suggests that employees may prefer to have part of their remuneration take the form of amenities such as what?
(a) Baseball fields.
(b) Housing allowance.
(c) Libraries.
(d) Parking spaces.

2. What is one disadvantage Friedman describes of programs to alleviate poverty?
(a) Fraud.
(b) Funding.
(c) Administration.
(d) Authorization.

3. In Friedman's analysis, what century is the historical exception to most men living in tyranny, servitude, and misery?
(a) 19th.
(b) 18th.
(c) 17th.
(d) 20th.

4. In 1961, how much did the government spend on direct welfare payments and programs?
(a) $45 million.
(b) $30 million.
(c) $33 billion.
(d) $42 billion.

5. According to Friedman, what is one major cost of the extension of governmental welfare activities?
(a) Increased regulation of private organizations.
(b) Lower productivity of labor.
(c) Higher taxes with low results.
(d) Decline in private charitable activities.

Short Answer Questions

1. Who does Friedman think should set exchange rates?

2. What does Friedman believe will markets do over time to monopolies?

3. Friedman's evidence suggests that for every $100 of government spending, a certain amount is added to income. How much?

4. What is one factor that Friedman believes has reduced inequality?

5. Which term refers to the government stimulating spending?

(see the answer key)

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