When People in a Barter Economy Began to Accept the Good

question 75

Multiple Choice

When people in a barter economy began to accept the good that had greater acceptability than all other goods,they weren't trying to create the institution of money.They were simply trying to __________.

• A) get along with their neighbors.
• B) become rich.
• C) make trading easier for themselves.
• D) pay lower prices.
• E) none of the above

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Definitions:

Budget Constraint

A representation of all the combinations of goods and services that a consumer can afford given their income and the prices of goods.

Price of Apples

The amount of money required to purchase a unit or specific quantity of apples, often influenced by factors such as supply, demand, and production costs.

Price of Bananas

refers to the market cost of bananas, which can vary based on factors like supply, demand, seasons, and geographical conditions.

Budget Line

A graph depicting all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.