View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 5, Fiscal Policy.

Multiple Choice Questions

1. Friedman uses the example of selling ______ to demonstrate a true global economy.
(a) Rice.
(b) Corn.
(c) Oil.
(d) Wheat.

2. The thought that the best use of government spending would be on useless projects is known as ______.
(a) "Filling holes."
(b) "Steaming the water."
(c) "Evening it out."
(d) "Emptying the pot."

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

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

5. A key component of the government spending is the ______.
(a) Substitution effect.
(b) Multiplier effect.
(c) Externality effect.
(d) Reduction effect.

Short Answer Questions

1. One role of government argued by the New Deal was to ______.

2. The original balancing thought is based on whose economic philosophy?

3. What does Friedman believe will markets do over time to monopolies?

4. According to Friedman, the market enables wide diversity, meaning power can be located in ______.

5. Which of the following does Friedman dispute?

(see the answer key)

This section contains 237 words (approx. 1 page at 300 words per page) View a FREE sample