The Marshall Plan

question 57

Multiple Choice

The Marshall Plan

• A) was a policy of building up military strength for the purpose of discouraging military attacks by other nations.
• B) focused on the formation of mutual defense alliances with other nations.
• C) put in place a program of mutually assured destruction.
• D) was directed towards negotiating treaties to limit the number of antiballistic missiles that the United States and the Soviet Union could develop.
• E) was a policy of U.S. economic assistance to European nations following World War II to help those nations recover from the war.

---

Definitions:

Long Run

A time period in which all factors of production and costs are variable, allowing for all inputs to be adjusted.

Profit

The financial gain obtained when the revenue from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Total Revenue

The gross revenue of a company, being the entire sum of income from goods or services sold, prior to the deduction of any costs.

Marginal Cost

The extra expense associated with the production of an additional unit of a product or service.