The Higher and More Unpredictable the Changes in the Monetary

question 55

Multiple Choice

The higher and more unpredictable the changes in the monetary unit, the

• A)lower the opportunity cost of using it as a standard of deferred payment.
• B)less likely barter exchange will replace it.
• C)lower the opportunity cost of using it as a store of value.
• D)higher the opportunity cost of using it as a store of value.
• E)lower the opportunity cost of using it as a medium of exchange.

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Definitions:

Absolute Advantage

The capability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources.

Tractors

Heavy vehicles designed for agricultural use, primarily to mechanize farming tasks including plowing, planting, and harvesting.

Opportunity Cost

Forfeiting possible rewards from various alternatives when a singular option is chosen.

Crude Oil

A natural fossil fuel consisting of hydrocarbon deposits and other organic materials that can be refined to produce various types of energy products.