Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false ?

• A) Round stones with holes in the center can serve as money.
• B) Money eases the process of exchanging goods and services in a modern economy.
• C) Money serves as a measure of value only when it is backed by gold or silver.
• D) Money is used as a measure of the relative value of goods and services in an economy.

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Definitions:

Short Run

A period of time during which at least one of a firm's inputs is fixed, limiting its ability to increase production.

Long Run

A period in economics in which all factors of production and costs are variable, allowing for full adjustment to changes.

Total Revenue

Total revenue is the total income generated by a company from its sales of goods or services before any expenses are subtracted.

Total Cost

The sum of all costs incurred in the production of goods or services, including both fixed and variable costs.