If There Are Four Goods in a Barter Economy,then One

question 74

Multiple Choice

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

• A)8
• B)6
• C)5
• D)4

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Definitions:

Regulation

The establishment of rules and laws by governments or regulatory bodies to control or govern conduct within various fields or industries.

Invisible Hand

A metaphor introduced by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society.

Market System

An economic system in which decisions regarding investment, production, and distribution are based on supply and demand, with minimal government interference.

Scarcity

The limits placed on the amounts and types of goods and services available for consumption as the result of there being only limited economic resources from which to produce output; the fundamental economic constraint that creates opportunity costs and that necessitates the use of marginal analysis (cost-benefit analysis) to make optimal choices.