Question 1

True or false: Friedman believed the primary social responsibility of a business is to increase its profits.

Accepted Answer

True. In his 1970 New York Times article, he argued corporate executives should focus on maximizing shareholder returns within legal and ethical bounds.

Question 2

True or false: Friedman argued that inflation is always and everywhere a monetary phenomenon.

Accepted Answer

True. This famous quote summarizes his monetarist view: excessive money supply growth causes inflation, not government spending or labor costs.

Question 3

True or false: Friedman won the Nobel Prize in Economics for his work on consumption analysis and monetary theory.

Accepted Answer

True. He received the 1976 Nobel Memorial Prize for his achievements in consumption analysis, monetary history, and stabilization policy.

Question 4

True or false: Milton Friedman once advised the Chilean dictator Augusto Pinochet on economic policy.

Accepted Answer

True. Friedman met Pinochet in 1975, advising on shock therapy to curb hyperinflation, though he later distanced himself from the regime's human rights abuses.

Question 5

True or false: Friedman co-developed the Phillips Curve theory, which links inflation and unemployment.

Accepted Answer

False. The Phillips Curve was developed by A.W. Phillips. Friedman famously criticized it, arguing the trade-off was only temporary in the long run.

Question 6

True or false: Friedman served as the Chairman of the Federal Reserve under President Ronald Reagan.

Accepted Answer

False. Friedman was a vocal critic of the Fed but never chaired it. Paul Volcker and later Alan Greenspan held that role during Reagan's presidency.

Question 7

True or false: Friedman was a lifelong advocate for a guaranteed minimum income for all citizens.

Accepted Answer

True. He championed a negative income tax as a simpler alternative to welfare, arguing it would reduce bureaucracy and poverty traps.

Question 8

True or false: Friedman was a strong supporter of the gold standard throughout his entire career.

Accepted Answer

False. Friedman actually favored a monetary rule for the money supply, not a gold standard. He saw gold as impractical and prone to instability.

Milton Friedman Trivia Questions