Asked by
fikir tadesse
on Nov 11, 2024
Verified
Which of the following is true if a nation's official money fails to serve as a medium of exchange?
A) Nothing will replace money to help facilitate exchange.
B) There will be an increase in economic efficiency.
C) Resources will divert from production to exchange.
D) Transactions costs of exchange will decrease.
E) Fewer barter exchanges will be completed.
Medium Of Exchange
is anything widely accepted as a means for payment of goods and services, facilitating trade by avoiding the limitations of barter.
Economic Efficiency
A state in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.
- Comprehend the roles and attributes of money, including its function as a measure of value, medium for transactions, and a repository of buying power.
Verified Answer
JM
Learning Objectives
- Comprehend the roles and attributes of money, including its function as a measure of value, medium for transactions, and a repository of buying power.