The Risk of Specializing (In the Production of One Good

question 32

Multiple Choice

The risk of specializing (in the production of one good or service) is

• A) lower in a barter economy than in a money economy.
• B) lower in a money economy than in a barter economy.
• C) the same in both a money and barter economy.
• D) greater the less likely you and the person you want to trade with have a double coincidence of wants.
• E) b and d

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Definitions:

Production Function

An equation, table, or graph that shows the maximum output that can be produced with a given set of inputs, based on the technology available.

Labor

Human endeavor, incorporating both the physical and the mental, aimed at producing goods and services.

Demand Curve

A graphical representation of the demand function, showing the relationship between the price of a good and the quantity demanded, typically downward-sloping.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at different prices.