Why can’t food be used as a form of money?
What will be an ideal response?
Hypothetically, you could use food as a means of exchange and a unit of account. For example, you could pay for goods in muffins. However, food is not a good store of value, as food can become stale and decay. Thus food does not maintain its value as a dozen fresh muffins today will not be worth the same 10 days from now.
You might also like to view...
Suppose exports and imports both rise by $1. GDP
A) rises by $2. B) rises by $1. C) remains unchanged. D) falls by $1. E) falls by $2.
Among the causes of an increase in labor supply is ________
A) improved availability and affordability of day care for children B) an increase in enrollment at colleges C) an increase in the college wage premium D) an expansion of economic activity
According to the above figure, the market clearing wage rate is
A) We. B) Wm. C) We - Wm. D) Wm + We.
Figure 34-2
?
In Figure 34-2, if the United States and Mexico are negotiating to trade wheat for petroleum,
A. the United States must receive more than 1 2/3 units of petroleum for a unit of wheat. B. Mexico must receive more than 1 2/3 units of petroleum for a unit of wheat. C. the limits of the agreement are between 1 unit of wheat for 2/3 unit of petroleum for the United States and 1 unit of wheat for 1 1/2 units of petroleum for Mexico. D. if the agreement is formalized at 1 unit of wheat for 1 unit of petroleum, then Mexico will benefit from the trade but the United States will not.