People Use Money as a Medium of Exchange When They

question 68

Multiple Choice

People use money as a medium of exchange when they:

• A) hold money to transfer purchasing power into the future.
• B) use money as a measure of economic transactions.
• C) use money to buy goods and services.
• D) hold money to gain power and esteem.

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Definitions:

Diminishing Marginal Utility

The principle that as a consumer consumes more of a good, the additional satisfaction gained from each additional unit decreases.

Staples

Basic or essential goods and services that are consumed regularly by individuals or businesses.

Paper Clips

Paper clips are small pieces of bent wire or plastic used for holding sheets of paper together.

Marginal Utility

The additional satisfaction or utility that a person receives from consuming one additional unit of a good or service.