Gold Is a Perfect Medium of Exchange and Measure of Value

question 76

Multiple Choice

Gold is a perfect medium of exchange and measure of value because of its:

• A) divisibility, portability, and homogeneity.
• B) divisibility and durability.
• C) durability and relative scarcity.
• D) durability and homogeneity.
• E) divisibility, durability, and relative scarcity.

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Definitions:

Perfectly Competitive

Describes a market structure where many firms offer identical products, there are no barriers to entry or exit, and all firms are price takers, meaning they accept the market price as given.

Perfectly Competitive

A market structure characterized by an infinite number of small firms, homogeneous products, and easy entry and exit, leading to price-taking behavior.

Standardized Goods

Products that are uniform in quality and specifications, allowing them to be interchangeable with others of the same type.

Market Share

The share of a market held by a certain company or product.