study questions - Milton Friedman Capitalism and Freedom...

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Milton Friedman, Capitalism and Freedom Study Questions Introduction 1. What should the relationship between the individual and his/her government be, according to Friedman? 2. What two principles does Friedman claim can guide government to benefit its citizens while “avoiding the threat to freedom”? 3. What does “liberalism” mean, according to Friedman? How has the meaning of the term changed over time? Chapter One 4. How does economic freedom promote political freedom? 5. Friedman states that there are two ways of coordinating economic activities of large numbers of people. What are they? (Do you think these two categories completely describe all the possible means of organizing a state’s economy?) 6. What two provisos does Friedman claim must be met for co-operation to be “strictly individual and voluntary”? 7. How does the free market protect individual sellers/buyers/employers/employees from coercion by buyers/sellers/employees/employers (the other side of a given transaction)?
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