If Jack Sparrow Buries a Chest of Gold Bullion on a Deserted

question 18

Multiple Choice

If Jack Sparrow buries a chest of gold bullion on a deserted island and plans to come back later,then the gold is functioning as a:

• A) unit of account.
• B) store of value.
• C) medium of exchange.
• D) barter tool.

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Definitions:

Creative Destruction

Creative destruction refers to the process through which new innovations lead to the demise of older technologies or business models, fostering growth and economic progress.

New Firms

Recently established companies or businesses entering a market.

Dominant Firms

Companies that hold a major portion of the market share in their industry, influencing market conditions and prices.

Average Total Cost

The total cost of production divided by the quantity produced, it measures the average cost per unit of a product.