View a FREE sample

This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

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

2. According to Friedman, what is a necessary condition for political freedom?
(a) Fair trade.
(b) A high gross domestic product.
(c) Governmental regulation.
(d) Competitive capitalism.

3. Which term refers to the government stimulating spending?
(a) "Charge the battery."
(b) "Prime the pump."
(c) "Rev the engine."
(d) "Grease the skids."

4. What does Friedman prefer when it comes to exchange rates?
(a) Sinking exchange rates.
(b) Rising exchange rates?
(c) Floating exchange rates.
(d) Hovering exchange rates.

5. Which of the following, for Friedman, is the most important factor for the Federal Reserve?
(a) Loans and lending practices.
(b) Stability.
(c) Regulation of the market.
(d) Economic growth.

6. What term refers to the argument for education that parents will not do best for their children?
(a) Sacrificial.
(b) Paternalistic.
(c) Employment.
(d) Maternalistic.

7. Friedman makes the distinction between education and ______.
(a) Instruction.
(b) Aging.
(c) Schooling.
(d) Income.

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

9. Instead of government spending, what does Friedman advocate the government use to stabilize the economy?
(a) Health care.
(b) Unemployment.
(c) Welfare.
(d) Taxes.

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

11. Friedman believes that vocational and professional schools should be totally ______ run.
(a) Publicly.
(b) Privately.
(c) Governmentally.
(d) Cooperatively.

12. Friedman asserts that government is needed for the ______.
(a) "Rules of the citizens."
(b) "Rules of the road."
(c) "Rules of the game."
(d) "Rules of the system."

13. Friedman theorizes that in extreme cases where parents don't pay for schooling, the government could provide a ______.
(a) Pass.
(b) Allowance.
(c) Subsidy.
(d) Discount.

14. What does Friedman claim that governments abuse?
(a) The power to determine taxes.
(b) Ability to issue stocks.
(c) The trust of the people.
(d) Commodity standards.

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

Short Answer Questions

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

2. According to Friedman, what conflicts with one another for men?

3. A key component of the government spending is the ______.

4. What does Friedman believe is one drawback of the Federal Reserve having so much power?

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

(see the answer keys)

This section contains 462 words (approx. 2 pages at 300 words per page) View a FREE sample