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This test consists of 5 short answer questions, 10 short essay questions, and 1 (of 3) essay topics.

Short Answer Questions

1. Instead of government spending, what does Friedman advocate the government use to stabilize the economy?

2. What does Friedman believe coordinates individuals over vast distances and across all belief systems?

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

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

5. Friedman states that government should be ______.

Short Essay Questions

1. Explain "floating exchange rates."

2. Why does Friedman believe government power should be limited?

3. What is Friedman's definition of political freedom? Of economic freedom?

4. What is fiscal policy?

5. What is meant by "paternalistic grounds"?

6. How does Friedman argue that floating exchange rates can affect international trade?

7. Explain the paternalistic argument that Friedman describes for government involvement in education.

8. Where does Friedman believe power in government should be located?

9. Concerning business cycles that Friedman explains, what is one role of government?

10. According to Friedman what is the role of government?

Essay Topics

Write an essay for ONE of the following topics:

Essay Topic 1

Friedman makes a clear distinction between the historical usage of the term liberal and the present day definition. Compare and contrast the different uses of the term liberal.

Essay Topic 2

Chapter 7 is arguably Friedman's most controversial chapter because of his views of government intervention in discrimination. Friedman, the free market capitalist, believes that government should not have laws based on race and people should be free to shop, purchase, and hire wherever they choose. Analyze Friedman's argument and examine the historical examples he gives to support his opinion.

Essay Topic 3

Friedman argues that government mishandling of the money supply produced the Great Depression. Examine Friedman's analysis of the Great Depression and determine if the Federal Reserve System caused the Great Depression.

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This section contains 606 words (approx. 3 pages at 300 words per page) View a FREE sample