In Order to Function as a Medium of Exchange, Money

question 112

Multiple Choice

In order to function as a medium of exchange, money must:

• A)be backed by gold.
• B)maintain a constant value over an extended period of time.
• C)be backed by some precious commodity.
• D)be generally accepted in exchange for goods and services.

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Definitions:

Marginal Utility

The increased enjoyment or advantage gained by a consumer from acquiring one more unit of a particular good or service.

Utility Schedule

A table or graph showing the level of satisfaction or utility that a consumer derives from consuming different quantities of a good or service.

Marginal Utility

The additional satisfaction or benefit a consumer receives from consuming one more unit of a good or service.

Newspaper

A publication, generally made of paper and ink, that is distributed on a regular or daily basis and contains news, articles, advertisements, and other information of public interest.