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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 10, The Tide is Turning.

Multiple Choice Questions

1. Friedman suggests constitutional amendments to limit government in all but the following areas:
(a) international trade
(b) occupational licensure
(c) qualificaiton of bureaucrats
(d) wage and price controls

2. Gresham's Law says that:
(a) good money decreases
(b) bad money drives out good
(c) good money drives out bad
(d) good money multiplies

3. The United States banking system is:
(a) a fractional reserve system
(b) a full reserve system
(c) not dependent on reserves
(d) a no reserve system

4. A market failure occurs when:
(a) the production of a good is discontinued
(b) an action or transaction affects third parties
(c) a producer finds there is no demand for his good
(d) a producer goes bankrupt

5. Equality before the law refers to all but:
(a) innate abilities
(b) religion
(c) race
(d) nationality

Short Answer Questions

1. A school voucher program would:

2. The price system functions in such a way that each individual acting in his own best interests, makes everyone better off. This concept is known as the:

3. When did the concepts of equality before God and the law begin to come closer together?

4. What functions as the central bank for the United States?

5. Some people support tariffs because they think that tariffs:

(see the answer key)

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