Money Solves the "Double Coincidence of Wants" Problem Since It

question 53

Multiple Choice

Money solves the "double coincidence of wants" problem since it acts as a

• A) medium of exchange.
• B) unit of account.
• C) store of value.
• D) all of the above.

---

Definitions:

Price-Taker Firm

A business that has no control over the market price of its products and must accept the prevailing market price.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and opportunity costs.

Opportunity Cost

The highest valued alternative that must be sacrificed as a result of choosing an option.