Which Statement Is True

question 156

Multiple Choice

Which statement is true?

• A)One of the functions of money is that it serves as a receipt for gold.
• B)The most important function of money is that it serves as a medium of exchange.
• C)Barter requires specialization.
• D)None of the statements are true.

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Definitions:

Wage Rate

The amount of compensation paid to employees for their labor per unit of time, often expressed per hour or year.

Substitution Effect

The economic principle that as prices rise (or incomes decrease), consumers will replace more expensive items with less costly alternatives.

Output Effect

The impact on an organization's total output resulting from a change in price, affecting the quantity supplied or demanded.

Substitute Resource

A resource that can be used in place of another, often relevant in the context of production or environmental sustainability.