When Is Money Considered to Be Legal Tender

question 42

Multiple Choice

When is money considered to be legal tender?  

• A) if it is backed by gold or silver 
• B) if it is commodity money 
• C) if the government says it is 
• D) if it is in a bank account

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to the volume of production or output.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, or insurance.

Lawn-mowing

The action or process of cutting the grass of a lawn, typically using a lawn mower.

Perfectly Competitive

A market structure characterized by many buyers and sellers, all of whom have full information and the products are perfect substitutes.