4 Ways to Spend Money- Milton Friedman

The video explores an experiment inspired by Milton Friedman's economic theories. Students are asked to choose items and guess each other's preferences, first without and then with a monetary twist. The experiment demonstrates how spending behavior changes when using someone else's money. The video concludes with an explanation of Friedman's theory on spending money in four different ways, highlighting inefficiencies in government spending.

What does Milton Friedman suggest about spending money? List the four ways mentioned.

How does the concept of gift giving relate to the difficulty of spending money on others?

What was Friedman's view on government spending and its efficiency compared to free markets?