In a World with No Money, Costs Are Expressed in Terms

question 68

Multiple Choice

In a world with no money, costs are expressed in terms of other goods. If one video game costs two hamburgers, and a hamburger costs three pops, how many pops would it take to buy a video game?

• A)5
• B)3
• C)6
• D)3/2
• E)1/6

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Definitions:

Dividend Per Share

The total dividends declared or paid by a company divided by the current number of outstanding shares.

Trading Securities

Financial assets that are bought and sold with the intention of generating profits from short-term price fluctuations.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, other than in a forced or liquidation sale.

Cost Method

An accounting method used to record investments, where the investment is recorded at its acquisition cost without recognizing periodic gains or losses.