View a FREE sample

This quiz consists of 5 multiple choice and 5 short answer questions through Chapter 11, Social Welfare Measures.

Multiple Choice Questions

1. What does Friedman believe needs protection in order for the freedom of the market to arise?
(a) Religion.
(b) Government.
(c) Citizens.
(d) Contracts.

2. What is the term for currency not being traded for any amount of another currency?
(a) None of the answers is correct.
(b) Unconvertible.
(c) Irreversible.
(d) Inconvertible.

3. Friedman believes that free markets are not sufficient for political freedom since many countries demonstrate the possibility of ______.
(a) Economic freedom.
(b) Dictatorial government.
(c) Authoritarian capitalism.
(d) Laissez-faire markets.

4. What does the Texas Railroad Commission enforce?
(a) Cattle in fields near railway lines.
(b) Transportation of goods by rail.
(c) Output of oil wells.
(d) Number of trains on the rails.

5. One argument Friedman theorizes for Social Security is ______.
(a) The neighborhood effect.
(b) The economics of incentives argument.
(c) Paternalism.
(d) The lost boys result.

Short Answer Questions

1. Three levels of control are licensing, registration, and ______.

2. What term refers to the circumstance under which the action of one individual imposes significant costs on other individuals for which it is not feasible to make him compensate them?

3. Who does Friedman think should set exchange rates?

4. What term refers to the argument for education that parents will not do best for their children?

5. Which term describes the purpose of federal spending?

(see the answer key)

This section contains 243 words (approx. 1 page at 300 words per page) View a FREE sample