One Reason for the Collapse of the Bretton Woods System

question 1

Multiple Choice

One reason for the collapse of the Bretton Woods system was

• A) the U.S.balance of payments deficit
• B) the U.S. balance of payments surplus
• C) the depletion of reserve dollars by foreign central banks
• D) none of the above

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Definitions:

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming one more unit of a good or service.

Marginal Social Cost

The additional cost to society of producing one extra unit of a good or service.

Garbage Disposal

A device installed under a kitchen sink that shreds food waste into small pieces to pass through plumbing.

Recycling

The process of converting waste materials into new products to prevent waste of potentially useful materials, reduce consumption of fresh raw materials, and lower energy usage and pollution.