The Barter Method of Exchange Isn't More Common in the U.S.economy

question 63

Multiple Choice

The barter method of exchange isn't more common in the U.S.economy because the

• A) double coincidence of wants frequently occurs.
• B) level of commodity money is too low.
• C) level of commodity money is too high.
• D) double coincidence of wants infrequently occurs.
• E) amount of money in the economy is easy to measure.

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Definitions:

Initial Investments

Capital outlay at the start of a project, including costs for acquiring assets, setup, and other expenses necessary for the beginning of operations.

After-Tax Discount Rate

The discount rate used in investment appraisal and financial analysis that takes into account the effect of taxes on the rate of return.

Income Tax Rate

The percentage at which income is taxed by the government, varying across income levels and jurisdictions.

Straight-Line Depreciation

A technique for distributing the expense of an asset uniformly over its lifetime.