The Problem of a Double Coincidence of Wants Refers to

question 83

Multiple Choice

The problem of a double coincidence of wants refers to

• A)the insatiability of wants in a free market economy.
• B)poorly-managed companies producing what consumers want only by coincidence.
• C)the necessity in a barter system of each trading partner wanting what the other has to trade.
• D)the likelihood that needs will not be the same as wants.

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Definitions:

Sales Dollars

The total revenue generated from the sale of goods or services, measured in dollar amount.

Common Fixed Expenses

Expenses that remain constant in total regardless of changes in the level of activity or volume of output.

Break-even

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

Net Operating Income

The total profit of a company after operating expenses but before deducting interest and taxes.