Which of the following is one of the most important benefits of money in an economy?
A) Money allows for the exchange of goods and services.
B) Money allows for the accumulation of wealth.
C) Money makes exchange easier, leading to more specialization and higher productivity.
D) Money encourages people to produce all of their own goods (self-sufficiency) and therefore increases economic stability.
Answer: C
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However, this type of bargaining will tend to be limited when:
According to the policy trilemma hypothesis, of the three goals generally pursued by policymakers in an open economy,
A) only one of the goals is possible to achieve at any one time. B) it is possible for a country to achieve two of the goals at the same time, but not all three. C) it is possible for a country to achieve all three goals at the same time in the short run, but not in the long run. D) it is only possible for a country to achieve all three goals at the same time in the long run.
A computer sells for $800 in the United States and for 600 British pounds in England. Given an exchange rate of 0.65 British pounds = $1, how do the computer prices of these countries compare?
a. The computer sells for the same price in both countries. b. The computer costs $923 more in the United States. c. The computer costs $95 more in England. d. The computer costs $124 less in the United States. e. The computer costs $124 less in England.
State governments' main source of revenue is
a. property taxes. b. income taxes. c. excise taxes. d. sales taxes.