What Effect Did World War I Have on the Economies

question 68

Multiple Choice

What effect did World War I have on the economies of the nations involved?

• A) Governments reaffirmed their commitments to the gold standard.
• B) Increases in war spending resulted in shortages of consumer goods.
• C) Governments increasingly relied on private corporations to keep their economies running.
• D) War spending resulting in economic booms.
• E) Inflation rates stayed near zero.

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Definitions:

Point Elasticity

The measure of how much the quantity demanded of a good responds to a change in price at a specific point on the demand curve.

Producer Surplus

The difference between the amount a producer is paid for a good and the minimum amount they are willing to accept for producing it.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Equilibrium Price

The price at which the quantity demanded by consumers equals the quantity supplied by producers, resulting in market stability.