The Fact That People Are Willing to Save Money for Future

question 125

Multiple Choice

The fact that people are willing to save money for future purposes describes which function of money _____.

• A)bartering
• B)medium of exchange
• C)measure of value
• D)store of value

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Definitions:

Marginal Social Cost

The additional cost to society as a whole of producing one more unit of a good or service, including both private and external costs.

Marginal Damage Cost

The additional cost associated with producing one more unit of a good or service, considering the negative externalities.

Efficient Amount

This refers to the quantity of a good or service that maximizes social welfare, where the marginal benefit to consumers equals the marginal cost of production.

Marginal Benefit

The incremental benefit or pleasure derived from consuming one more unit of a good or service.