When Economists Refer to Substitutability in Discussing Money, They Are

question 16

Multiple Choice

When economists refer to substitutability in discussing money, they are referring to

• A)the rate at which households substitute work for leisure in exchange for money.
• B)the rate at which one country's currency can be substituted for another country's currency.
• C)the ease with which an asset can be converted into definitive money with no loss of value.
• D)the ease with which currency can be converted into silver or gold.

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Definitions:

Marginal Benefit (MB)

The extra advantage gained by using an additional unit of a product or service.

Marginal Cost (MC)

The financial cost of creating an additional unit of a product or service.

Prison Rates

The number of individuals incarcerated within a prison system per 100,000 population in a specific geographic area.

Crime Rates

The number of reported criminal incidents as a proportion of the population in a given area during a specified period.