1. In Friedman's opinion, what will check government power?
(a) A tripartite government.
(b) A free market.
(c) The people.
(d) A strong judicial system.

2. What is the name of the system with the purpose of regulating monetary policy between leading countries?
(a) The World Bank System.
(b) The Bretton Woods System.
(c) The International Monetary System.
(d) The Gold Standard System.

3. Friedman's evidence suggests that for every $100 of government spending, a certain amount is added to income. How much?
(a) $150.
(b) $50.
(c) $300.
(d) $100.

4. Friedman's analysis of government argues that it is not ______.
(a) Stagnantary.
(b) Contractionary.
(c) Reductionary.
(d) Expansionary.

5. Friedman simply states that to alleviate poverty, we should have a program directed at ______.
(a) Regulation of charitable giving.
(b) Helping the poor.
(c) Providing work programs.
(d) Price subsidies.

Short Answer Questions

1. 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?

2. A major point for Friedman is that politics and economics are not ______.

3. What does Friedman say can government not duplicate?

4. What is the term for currency not being traded for any amount of another currency?

5. Friedman advocates the end of ______.

(see the answer key)

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