A Good Can Serve as Money Only If

question 276

Multiple Choice

A good can serve as money only if

• A)government mandates that the good must be accepted in payment of debts.
• B)it is declared by authorities to be legal tender.
• C)it has intrinsic value or if it is backed by precious metals.
• D)citizens accept the good as a means of payment for transactions and debts.

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Definitions:

Technological Progress

Innovations and improvements in technology that can lead to more efficient production methods and economic growth.

Factor of Production

Inputs used in the production of goods or services to make an economic profit, including land, labor, capital, and entrepreneurship.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information, leading to firms being price takers.

Equilibrium Wage

The pay rate where the amount of labor provided is equal to the amount of labor required.