The Government Has Been Considering Doing Away with Minting Pennies

question 15

Multiple Choice

The government has been considering doing away with minting pennies because they are rarely used for purchases (with most people collecting them or throwing them away) .How would an economist best explain this?

• A) More people are using credit and debit cards, so they are not in the habit of using monetary change.
• B) Prices have increased over time, and it would take far too many pennies to buy anything of value.
• C) Prices have increased over time, and the opportunity cost of carrying around large quantities of pennies has become too large.
• D) Prices have increased over time, and the opportunity cost of carrying around pennies has fallen.
• E) People who use pennies probably aren't spending enough money; removing the penny will force people to spend more.

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Definitions:

Requests For Adjustment

Inquiries or demands made by customers or clients seeking correction of a mistake, refund, or compensation.

Accommodation

The process by which the eye changes optical power to maintain a clear image (focus) on an object as its distance varies.

Visual Acuity

The clarity or sharpness of vision, which is quantitatively measured by the ability to identify letters or numbers at a defined distance.

Astigmatism

A common imperfection in the eye's curvature causing distorted or blurred vision.