The Government Has Been Trying to Mint Dollar Coins Instead

question 145

Multiple Choice

The government has been trying to mint dollar coins instead of printing paper dollar bills,but people have been reluctant to use coins instead of paper bills.How would an economist explain this reluctance?

• A) More people are using credit and debit cards,so people are not accustomed to using change.
• B) Retailers find it too expensive to deal with coins and would have to raise their prices if consumers used coins more.
• C) The opportunity cost of carrying around large quantities of coins is too large.
• D) Prices have increased over time,and the opportunity cost of carrying around a large number of coins would be low.
• E) People who receive a dollar coin are more likely to collect than spend the money,and the economy won't grow as quickly because less is being spent.

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Definitions:

Lost Sale

A situation in which a potential sale is not realized, often due to stock unavailability, pricing issues, or the customer's decision to purchase from a competitor.

Order Policy

Guidelines or rules defining how and when inventory orders should be placed to maintain optimal stock levels and minimize costs.

Random Numbers

Numbers generated in a sequence where each number has an unpredictable outcome, widely used in statistics, simulations, and cryptography.

Random Number Intervals

A range within which a random number falls, used in simulations and probabilistic models to represent uncertainty or variability.