In Order for Something to Be Used as Money, It

question 98

Multiple Choice

In order for something to be used as money, it must be _____

• A) made of paper.
• B) issued by banks.
• C) declared to be money.
• D) generally acceptable.
• E) made of something valuable.

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Definitions:

Perfect Complements

Goods that are used together in fixed proportions to satisfy a particular need or desire.

Corner Solution

A situation in optimization problems where the optimal choice for an individual or firm involves taking an extreme position, often due to constraints or limits.

MRS

Marginal Rate of Substitution, the rate at which a consumer is willing to substitute one good for another, maintaining the same level of utility.

Indifference Curves

Indifference curves are graphical representations used in microeconomics to show combinations of two goods that provide the consumer with the same level of satisfaction or utility.