An Example of a Good That Can Be Used for Money

question 111

Multiple Choice

An example of a good that can be used for money that has no intrinsic value is:

• A) gold.
• B) paper dollar bills.
• C) cigarettes.
• D) Hershey kisses.

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Definitions:

Price Floor

A minimum legal price set by the government at which a good or service can be sold, aiming to prevent prices from falling too low.

Consumer Surplus

The contrast between the intended financial outlay of consumers on a good or service and the payment they ultimately make.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied.

Producer Surplus

The difference in earnings expected by producers for a good or service versus the actual payment received.