The Use of Money Contributes to Economic Efficiency Because

question 81

Multiple Choice

The use of money contributes to economic efficiency because

• A)governmental direction of the production and distribution of output can be avoided by using money.
• B)roundabout production could not occur without the availability of money.
• C)it is necessary for the creation of capital goods.
• D)it promotes specialization by overcoming the problems with barter.

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Definitions:

Express

To convey a thought or feeling in words or by gestures and conduct.

Buying Power

The amount of money or credit a person or company has available to purchase stocks, bonds, or other securities.

CPI

Stands for Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

US$

The United States Dollar, the official currency of the United States, represented as USD.