View a FREE sample

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

Multiple Choice Questions

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

2. According to Friedman, the market enables wide diversity, meaning power can be located in ______.
(a) Small pockets of individual actors.
(b) The hands of many.
(c) The hands of a few.
(d) Large pockets with limited interests.

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

4. What does Friedman assert is an example of an appropriate task for government?
(a) Defining property rights.
(b) Providing for the social welfare.
(c) Determining price.
(d) Regulating the job market.

5. According to Friedman, what is lost when foreign exchange is controlled by the government?
(a) Economic freedom.
(b) Educational freedom.
(c) Political freedom.
(d) Religious freedom.

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

7. Friedman's theory on government intervention is that government is needed to be what regarding disputes?
(a) Groundskeeper.
(b) Umpire.
(c) Announcer.
(d) Fan.

8. A common misunderstanding of economic freedom, according to Friedman, is that it emphasizes ______.
(a) Materialism.
(b) Wealth.
(c) Socialism.
(d) Prosperity.

9. Friedman states that government should be ______.
(a) Destroyed.
(b) Held accountable.
(c) Expanded.
(d) Limited.

10. Which type of education does Friedman not advocate the government paying for?
(a) Minimal.
(b) Liberal.
(c) Vocational.
(d) Industrial.

11. For Friedman, where is the best place for power to be held?
(a) In the states.
(b) At the federal level.
(c) In the economic system.
(d) In the local community.

12. Friedman states that government should be ______.
(a) Incorporated.
(b) Consolidated.
(c) Streamlined.
(d) Decentralized.

13. Besides enforcing contracts, what one other thing does Friedman say government should do?
(a) Regulate commerce.
(b) Protect against external threats.
(c) Provide for public transportation.
(d) Secure a country's borders.

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

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

Short Answer Questions

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

2. How are decisions, for Friedman, made where unanimity is a costly way of making decisions?

3. Friedman believes that economic control can lead to infringements on ______.

4. Which term describes the purpose of federal spending?

5. What is one way Friedman believes some people criticize markets?

(see the answer keys)

This section contains 421 words (approx. 2 pages at 300 words per page) View a FREE sample