The Number of Units of One Good That Trade for One

question 83

Multiple Choice

The number of units of one good that trade for one unit of alternative goods can be determined most easily when

• A)there is one unit of account.
• B)the goods all weigh about the same.
• C)the goods are all new.
• D)the goods are actively traded through barter.

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Definitions:

Goods and Services

The tangible and intangible outputs of an economy that satisfy consumer needs and wants.

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the public.

Factor Market

A marketplace for the services of a factor of production (e.g., labor, capital), where firms buy resources they need to produce goods and services.

Circular Flow

An economic model depicting how money moves through an economy between producers and consumers, illustrating the continuous flow of goods and services and financial transactions.