When Economists Say That Money Serves as a Medium of Exchange

question 251

Multiple Choice

When economists say that money serves as a medium of exchange, they mean that it is

• A) a way to keep wealth in a readily spendable form for future use.
• B) a means of payment.
• C) a monetary unit for measuring and comparing the relative values of goods.
• D) declared as legal tender by the government.

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Definitions:

Median

The middle value in a data set, which divides the distribution into two equal parts, ensuring that half of the data points are below it and half are above.

Test Statistic

A statistic calculated from sample data that is used to assess the truth of a hypothesis in statistical testing.

Null Hypothesis

A presumption that implies no relationship or effect between variables or conditions in the scenario being tested.

Sample Mean

The average value of a set of observations or data points, calculated by summing all the observations and dividing by the number of observations.