Which of the Following Criteria Would Make Gold a Poor

question 30

Multiple Choice

Which of the following criteria would make gold a poor medium of exchange?

• A)Its value depends on its purity and its purity is not easy to visibly identify.
• B)Durability so that value is not lost by spoilage.
• C)Value relative to its weight so that amounts large enough to be useful in trade can be easily transported.
• D)Divisibility because different goods are valued differently.

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Definitions:

Marginal Utility

The change in total utility a person derives from consuming an additional unit of a good or service.

Total Utility

The overall satisfaction or benefit a person receives from consuming a certain amount of goods or services.

Utility Maximization

The principle that individuals or firms seek to allocate their resources in a manner that maximizes their satisfaction or utility.

Money Income

Money income is the total amount of money earnings received by an individual or household, including wages, salaries, benefits, and investment income, before any deductions.