Barter May Be the Only Alternative

question 84

Multiple Choice

Barter may be the only alternative:

• A)if the supply of money dries up.
• B)if the price system is not allowed to function properly.
• C)if disinflation sets in.
• D)if hyperinflation sets in.
• E)if fiat money is discontinued.

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Definitions:

Wage Rate

The fixed amount of compensation or payment received by an employee from an employer in exchange for work or services performed.

Labor

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

Derived Demand

The demand for a good or service that results from the demand for a different, or intermediate, good or service.

Resources

Assets, materials, and human capabilities used to produce goods and services in an economy.