Money Is Functioning as a Medium of Exchange When You

question 18

Multiple Choice

Money is functioning as a medium of exchange when you:

• A) Buy lunch at a fast food restaurant for yourself and your friend.
• B) Use it to compare the cost of a steak dinner to the cost of a hamburger.
• C) Decide to save your cash for gas and eat leftover pizza for dinner.
• D) Borrow a DVD from your friend and she borrows your textbook.

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Definitions:

Shampoo and Conditioner

Consumer products used for hair care, with shampoo designed to clean the hair and scalp, and conditioner used to moisturize and detangle hair.

Advertising Elasticity

The responsiveness of a product's demand to changes in advertising expenditure.

Price Elasticity of Demand

A gauge for understanding the sensitivity of the demand for an item in response to price variations.

Advertising Elasticity of Demand

The rate at which advertising efforts increase the demand for a product or service.