If There Are Five Goods in a Barter Economy,one Needs

question 94

Multiple Choice

If there are five goods in a barter economy,one needs to know ten prices in order to exchange one good for another. If,however,there are ten goods in a barter economy,then one needs to know ________ prices in order to exchange one good for another.

• A)20
• B)25
• C)30
• D)45

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Definitions:

Riskless Assets

Financial instruments that are considered to have a minimal possibility of default, often yielding a guaranteed, but lower, return.

Utility Function

A mathematical representation that ranks preferences of consumers by assigning a numerical value to each possible bundle of goods, indicating the level of satisfaction or utility derived.

Expected Utility

A theory in economics that calculates the utility or satisfaction a person expects to receive from different possible outcomes in a risky or uncertain situation.

Walking To Work

The act of commuting to one's place of employment by foot, which can offer health benefits and reduce traffic congestion and pollution.