In Romania Under Communist Party Rule in the 1980s, Kent

question 113

Multiple Choice

In Romania under Communist Party rule in the 1980s, Kent cigarettes served as a medium of exchange. Given this, which of the following statements is true?

• A) This illustrates the use of Kent cigarettes as fiat money.
• B) Commodity money has no value apart from its use as money.
• C) This illustrates the use of Kent cigarettes as commodity money.
• D) Fiat money must be backed by gold; otherwise it is worthless.

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Definitions:

Differentiated

Pertaining to products or services that are distinguished from similar products or services by unique characteristics, branding, quality, or performance.

Substitute Products

Goods or services that can be used in place of each other, demonstrating a positive cross-elasticity of demand.

Oligopolistic Firms

Companies that are part of an oligopoly, a market structure with a small number of large firms dominating the industry, often leading to strategic behavior.

High Profits

Increased financial gains resulting from operating activities, typically seen as significantly above the average or expected level.