Foundations

Question 1

was elected president and implemented a “New Deal” for America

Answer 1

Franklin Delano Roosevelt

Question 2

The new deal introduced social welfare, regulated banks and industry and invested in infrastructure to create jobs

Answer 2

Franklin Delano Roosevelt

Question 3

Spending increased and the economy began to grow

Answer 3

Franklin Delano Roosevelt

Question 4

Economic instability and rejection of democratic and capitalist systems in much of the world contributed to the breakout of World War 2

Answer 4

Franklin Delano Roosevelt

Question 5

The war fuelled massive spending, which promoted economic growth and the end of the great depression

Answer 5

Franklin Delano Roosevelt

Question 6

The costs of the war and the destruction brought universal demands for global solutions to international problems

Answer 6

Franklin Delano Roosevelt

Question 7

Best known for his support of free markets

Answer 7

Friedrich Von Hayek

Question 8

Realized that the major problem for any economy is how to coordinate people’s actions so that what is needed is produced

Answer 8

Friedrich Von Hayek

Question 9

Believed free markets achieved this objective even though the coordination was not part of anyone’s intent

Answer 9

Friedrich Von Hayek

Question 10

he believed that one of the causes of the unemployment could be linked to government involvement in the economy

Answer 10

Friedrich Von Hayek

Question 11

He argued that government spending increased the money supply thereby stimulating businesses to make investments that were unwarranted

Answer 11

Friedrich Von Hayek

Question 12

The economy would grow but as a result of artificial economic forces

Answer 12

Friedrich Von Hayek

Question 13

Demand was not a product of real wealth, but rather the governments printing press

Answer 13

Friedrich Von Hayek

Question 14

The way to avoid the busts, he argued, is to avoid the booms that cause them

Answer 14

Friedrich Von Hayek

Question 15

He argued against government planning because he believed a central authority could not possibly coordinate all the activities of an economy

Answer 15

Friedrich Von Hayek

Question 16

Warned the government control of our economic lives would inevitably lead to “big government” and eventually to totalitarianism

Answer 16

Friedrich Von Hayek

Question 17

Milton Freidman a strong supporter

Answer 17

Friedrich Von Hayek

Question 18

First used his ideas to battle the great depression because of his ideas

Answer 18

John Maynard Keynes

Question 19

His general theory revolutionized the way economists think about economics

Answer 19

John Maynard Keynes

Question 20

He argued that economic growth relied on the total or “aggregate” demand of consumers

Answer 20

John Maynard Keynes

Question 21

Unemployment and low wages were obstacle to economic prosperity

Answer 21

John Maynard Keynes

Question 22

He wanted unemployment and incomes to be kept stable or increase so that consumption would contribute to aggregate demand and increased production

Answer 22

John Maynard Keynes

Question 23

He argued that during economic downturns governments should increase spending to provide job security thereby ensuring that consumer demand would continue to drive production

Answer 23

John Maynard Keynes

Question 24

Bretton Woods wanted to regulate the

Answer 24

currency

Question 25

John Mayner thought that government spending was essential in

Answer 25

recession

Question 26

Hayek thought that government intervening was

Answer 26

not good

Question 27

If you had gold in the bank the

Answer 27

country had money

Question 28

Supply and demand on

Answer 28

Foreign exchange market

Question 29

World bank and IMF controlled

Answer 29

184 countries provided loans to less debt in countries

Question 30

IMF was a short term,

Answer 30

financial assistance, and monitored exchange rates

Question 31

IMF was funded

Answer 31

through quotes

Question 32

Regulation of free trade conducted in

Answer 32

non-discrimination manner

Question 33

Free trade imported goods

Answer 33

the same as domestic goods

Question 34

Requiring members to give a list

Answer 34

of tariffs and trade

Question 35

WTO was to improve

Answer 35

trade relations and trade disputes

Question 36

Group of 8 meet

Answer 36

Annually and discuss economic and foreign policy

Question 37

La francophone was Canada’s original member

Answer 37

assists in economic integration

Question 38

CIDA adminstors

Answer 38

foreign aid in programs (human rights)