View a FREE sample

This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. In the market described by Friedman, exchanges between households are ______.
(a) Unwilling.
(b) Voluntary.
(c) Obligatory.
(d) Coerced.

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

3. According to Friedman, what is the Federal Reserve lacking?
(a) A Declaration of Independence of sorts.
(b) A Magna Carta of sorts.
(c) A Constitution of sorts.
(d) A Rosetta Stone of sorts.

4. In Chapter 3, what does Friedman provide a history of?
(a) World War I.
(b) American monetary policy.
(c) British colonialism.
(d) The Federal Reserve System.

5. According to Friedman, it can be argued that private schools ______ class distinctions, and therefore need government intervention.
(a) Exacerbate.
(b) Increase.
(c) Diminish.
(d) Maintain.

Short Answer Questions

1. Which of the following does Friedman dispute?

2. Friedman believes that free markets are not sufficient for political freedom since many countries demonstrate the possibility of ______.

3. Friedman asserts that the Federal Reserve created the major contractions of the following years except______.

4. One question Friedman asks is how we can stop government from destroying ______.

5. Which term describes the purpose of federal spending?

Short Essay Questions

1. What is Friedman's recommendation to the Federal Reserve System?

2. How does Friedman argue that floating exchange rates can affect international trade?

3. Concerning business cycles that Friedman explains, what is one role of government?

4. Why does Friedman believe government power should be limited?

5. Does Friedman believe that most societies have been free or not free?

6. Friedman explains that the economic activities of large numbers of individuals can be coordinated. In what two ways?

7. According to Friedman what is the role of government?

8. Where does Friedman believe power in government should be located?

9. What is fiscal policy?

10. What is the balance wheel theory?

(see the answer keys)

This section contains 614 words (approx. 3 pages at 300 words per page) View a FREE sample