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This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 3, The Control of Money.

Multiple Choice Questions

1. One question Friedman asks is how we can stop government from destroying ______.
(a) Citizens.
(b) Entertainment.
(c) Taxes.
(d) Freedom.

2. What is one way Friedman believes some people criticize markets?
(a) It gives people what they want.
(b) It inequitably distributes wealth.
(c) It limits people's choices.
(d) It hurts those in power.

3. What term refers to the Federal Reserve's ability to produce more money than is deposited?
(a) Reserve ability production.
(b) Overdraft protection.
(c) Fractional reserve banking.
(d) Percent fulfillment banking.

4. How are decisions, for Friedman, made where unanimity is a costly way of making decisions?
(a) Executive decision.
(b) Majority rule.
(c) A system of checks and balances.
(d) Decisions by committee.

5. For Friedman, what is an all-embracing ethic?
(a) Education.
(b) Religion.
(c) Government.
(d) Freedom.

Short Answer Questions

1. Friedman defines a country as a collection of ______.

2. What does Friedman assert is an example of an appropriate task for government?

3. Friedman asserts that current liberalism is tied to the state management of ______.

4. By Friedman's account, the market permits unanimity without ______.

5. Which of the following cannot be justified by Friedman for government interventions?

(see the answer key)

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