What is a problem with barter that makes it so difficult to use?
A) Individuals have to produce something to trade with.
B) Barter omits the store of value role for money.
C) Barter requires use of only fiat money.
D) Barter requires a double coincidence of wants.
E) Barter is very efficient but illegal because it avoids taxation.
D
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If velocity does not change and the quantity of money grows at the same rate as does real GDP, then in the long run
A) the real interest rate is less than the nominal interest rate. B) the inflation rate equals zero. C) the nominal interest rate equals zero. D) the inflation rate equals the growth rate of the quantity of money. E) the nominal interest rate is less than the real interest rate.
In a market economy:
a. collective decision-making is more important than individual decision-making. b. goods and services are distributed as if by an "invisible hand" to those who can not afford them. c. profit provides an incentive to be productive. d. the distribution of wealth is equitably distributed.
Explain how losses of existing firms are reduced as some firms exit a monopolistically competitive industry due to economic losses
Why is it important that a firm have different groups of consumers with different demand elasticities if it wishes to engage in price discrimination?
What will be an ideal response?