vixmoo p3

You use VND currency to pay the owner of a restaurant for a delicious meal.  The currency

• has no intrinsic value.  The exchange is an example of barter.

• has no intrinsic value.  The exchange is not an example of barter.

• has intrinsic value.  The exchange is not an example of barter.

• has intrinsic value.  The exchange is not an example of barter.

Which of the following is an example of barter?

• A parent gives a teenager a $10 bill in exchange for her babysitting services.

• A homeowner gives an exterminator a check for $50 in exchange for extermination services.

• A barber gives a plumber a haircut in exchange for the plumber fixing the barber’s leaky faucet.

• All of the above are examples of barter.

A double coincidence of wants

• is required when there is no item in an economy that is widely accepted in exchange for goods and services.

• is required in an economy that relies on barter.

• is a hindrance to the allocation of resources when it is required for trade.

• All of the above are correct.

            Money

• is more efficient than barter.

• makes trades easier

• allows greater specialization.

• All of the above are correct.

Which of the following lists is included in what economists call “money”?

• cash

• cash and stocks and bonds

• cash and stocks and bonds and real estate

• cash and stocks and bonds and real estate and all other assets

Economists use the term “money” to refer to

• all wealth.

• all assets, including real assets and financial assets.

• all financial assets, but not real assets.

• those types of wealth that are regularly accepted by sellers in exchange for goods and services.

Which of the following is a function of money?

• a unit of account

• a store of value

• medium of exchange

• All of the above are correct.

Which of the following best illustrates the medium of exchange function of money?

• You keep some money hidden in your shoe.

• You keep track of the value of your assets in terms of currency.

• You pay for your oil change using currency.

• None of the above is correct.

Any item that people can use to transfer purchasing power from the present to the future is called

• a medium of exchange.

• a unit of account.

• a store of value.

• None of the above is correct.

Which of the following is a store of value?

• cash and stocks

• cash but not stocks

• stocks but not cash

• neither cash nor stocks