Money Eliminates the Need for a Double Coincidence of Wants

question 26

Multiple Choice

Money eliminates the need for a double coincidence of wants primarily through its use as a

• A) unit of account.
• B) medium of exchange.
• C) store of value.
• D) standard of confidence.
• E) legal tender.

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Definitions:

Returns To Scale

The change in output resulting from a proportional change in all input factors where all inputs are increased or decreased by the same factor.

Marginal Products

This refers to the additional output that results from using an extra unit of a particular input, assuming other inputs are constant in the production process.

Production Function

A mathematical expression that describes the relationship between input factors and the output of goods or services.

Returns To Scale

The change in output of a production process as all inputs are increased proportionally.