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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 9, The Cure for Inflation.

Multiple Choice Questions

1. The command elements of every economy include things like:
(a) prices
(b) military conscription
(c) court orders
(d) forbidding the purchase and sales of heroin

2. An egalitarian supports:
(a) get rich quick schemes
(b) total freedom for all
(c) equality of outcomes
(d) programs resulting in greater liberty

3. Which of the following is not a function of the price system:
(a) efficient use of resources
(b) distribution of income
(c) transmitting information
(d) government established prices

4. In the inner city schools, much of the money goes for all but the following:
(a) preventing vandalism
(b) maintaining discipline
(c) education
(d) repairing damages from vandalism

5. Who has the greatest amount of choice in the selection of schooling?
(a) the middle income group
(b) all have equal choice
(c) the indigent
(d) the wealthy

Short Answer Questions

1. When the Fed sells bonds:

2. The Federal Deposit Insurance Corporation:

3. Friedman's view is that everyone who wants a higher education:

4. The Principle of Comparative Advantage states that a nation should specialize in:

5. What does Friedman call one of the most successful labor unions in history?

(see the answer key)

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