Economic Thinkers and Organizations

John Maynard Keynes was:

• A famous physicist

• A renowned economist

• A celebrated author

• A well-known politician

Friedrich Hayek was known for his economic beliefs in:

• Keynesian economics

• Marxist economics

• Classical liberalism

• Monetarism

Why were the World Bank and IMF created?

• To promote international monetary cooperation

• To provide loans to developing countries

• To stabilize exchange rates

• All of the above

What do supporters of the World Bank and IMF say?

• They promote global economic stability.

• They hinder economic growth.

• They focus on environmental issues.

• They support local businesses.

Critics of the World Bank and IMF say:

• They promote economic stability.

• They help in poverty reduction.

• They impose harmful economic policies.

• They support sustainable development.

What is the World Trade Organization and what was its predecessor?

• The World Trade Organization is an international organization that regulates trade between nations, and its predecessor was the General Agreement on Tariffs and Trade (GATT).

• The World Trade Organization is a global financial institution, and its predecessor was the International Monetary Fund (IMF).

• The World Trade Organization is a global environmental organization, and its predecessor was the United Nations Environment Programme (UNEP).

• The World Trade Organization is a global health organization, and its predecessor was the World Health Organization (WHO).

Read "Points of View" on page 229. What are structural adjustment loans?

Should the World Bank and IMF have the right to place conditions on these loans, or should these loans be offered with no strings attached?

• The World Bank and IMF should have the right to place conditions on these loans.

• These loans should be offered with no strings attached.

Describe the conditions that existed between the USA and USSR following WWII. Why do you think this period of time became known as the Cold War?

The Cold War interfered with global trade because:

• It led to the division of the world into two hostile blocs.

• It promoted free trade between all countries.

• It had no impact on global trade.

• It resulted in the creation of a single global market.