The Dawes Plan of 1924

question 63

Multiple Choice

The Dawes Plan of 1924

• A) was designed to help England and France make their debt payments to the United States.
• B) called for the United States to lend money to Germany to meet its reparation payments.
• C) called for both the United States to lend money to Germany to meet its reparation payments, and Britain and France to reduce the amount of German reparation payments.
• D) called for Britain and France to reduce the amount of German reparation payments.
• E) All these answers are correct.

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Definitions:

Marginal Returns

The additional output gained from increasing one unit of an input while keeping other inputs constant.

Output

The total amount of goods or services produced by a firm or country within a specific period.

Marginal Rate

The rate at which one variable changes with respect to a small change in another variable, often used in the context of taxation.

Technical Substitution

The process of replacing one combination of inputs or technologies with another to produce the same level of output.