Which of the Following Is a Potential Problem with Ecash

question 84

Multiple Choice

Which of the following is a potential problem with ecash?

• A) Hackers may break in.
• B) Regulation and control are virtually non-existent.
• C) There is no protection like that which covers government-controlled money systems.
• D) A computer crash could wipe out an account forever.
• E) All of these are potential problems.

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Definitions:

Perfectly Elastic

Describes a market situation where product demand or supply can vary greatly with a small change in price.

Excess Burden

The economic cost to society exceeding the revenue generated by a tax, often resulting from distortions in market behavior.

Economic Decisions

The choices made by individuals, businesses, governments, and other groups that affect the allocation of resources and the distribution of goods and services.

Excess Burdens

The economic inefficiencies that result from implementing a tax, often causing changes in consumption and production behaviors that lead to a loss in social welfare.