The Bretton Woods System

question 9

Multiple Choice

The Bretton Woods system

• A) represented the first time that governments explicitly made exchange rates a matter of international cooperation.
• B) was a form of floating exchange rates.
• C) was not fully implemented until 1949.
• D) was an attempt to limit domestic economic autonomy after WW II.
• E) was unsuccessful at establishing exchange rate stability in spite of rapid growth in international trade after WW II.

---

Definitions:

Collective Action Problem

A situation where individuals in a group have difficulty achieving a common goal due to conflicting self-interests.

Smaller Groups

Refers to subsets within a larger population, often used in statistics, sociology, or market analysis to denote groups with specific characteristics or interests.

Marginal Costs

The cost added by producing one extra item of a product, essentially the same as marginal cost but rephrased for clarity.

Marginal Benefits

The extra advantage or value received from consuming an additional unit of a product or service, influencing decision-making in economic transactions.