Because of the Problems They Experienced in Trying to Recover

question 36

Multiple Choice

Because of the problems they experienced in trying to recover from the two world wars, Britain's citizens became more open to

• A) the use of trade restrictions to help home industries survive.
• B) letting their colonies go.
• C) socialistic ideas in their government.
• D) borrowing from the United States and Canada.
• E) allowing women to come back into the work force.

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Definitions:

Purchasing Power Parity

A theory in economics that suggests that in the absence of transaction costs and other barriers, identical goods should have the same price in different countries when prices are expressed in a common currency.

Prices

Monetary values assigned to products and services which are determined by the interaction of supply and demand in the market.

Exchange Rates

The value of one currency for the purpose of conversion to another.

Price Level

The cumulative average pricing for goods and services across various industries within the economy.