Paper Money

question 16

Multiple Choice

Paper money

• A)has a high intrinsic value.
• B)is the primary medium of exchange in a barter economy.
• C)is valuable because it is generally accepted in trade.
• D)is valuable only because of the legal tender requirement.

---

Definitions:

Input Price

The cost associated with purchasing the raw materials, labor, and other resources required to produce goods and services.

Quantity Supplied

The amount of a good that producers are willing and able to sell at a certain price over a specified period of time.

Supply

The total amount of a good or service that producers are willing and able to sell at a given price over a specific time period.

Buyers and Sellers

Participants in a market who exchange money for goods or services, where buyers provide the money and sellers provide the goods or services.