The Bretton Woods System

question 79

Multiple Choice

The Bretton Woods system

• A)fixed exchange rates in terms of U.S.dollars
• B)fixed exchange rates in terms of all major currencies
• C)fixed exchange rates in terms of gold
• D)established a system of flexible exchange rates
• E)established the European monetary system

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Definitions:

Producer Surplus

The difference between the amount producers are willing to sell a good for and the actual amount they receive by selling it at the market price.

Total Surplus

The sum of consumer and producer surplus; represents the total net benefit to society from the production and consumption of a good or service.

Deadweight Loss

Economic efficiency is lost when the balance for a good or service is either not met or unattainable.

Tariff

A tax imposed on imported goods and services to regulate trade, increase government revenue, or protect domestic industries.