Which of the Following Items Serve as a Medium of Exchange

question 30

Multiple Choice

Which of the following items serve as a medium of exchange in the United States?
I. $100 cash
II. 50 euros
III. the balance in your checking account
IV. a $1,000 corporate stock that you own

• A) I only
• B) I and II
• C) I, II, and III
• D) I and III
• E) I, II, III, and IV

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Definitions:

Isocost Line

A graph line that shows all possible combinations of inputs that can be purchased with a given total cost.

Slope

A measure of the steepness, incline, or grade of a straight line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Capital

Resources, such as funds, equipment, and buildings, that are used in the production of goods and services.

Labor

Refers to the human effort, both physical and mental, used in the production of goods and services.