Barter & Introduction to Money Quiz

What is a subsistence economy?

• An economy based on trade of surplus goods

• An economy where people produce only enough to meet their basic needs

• An economy driven by high levels of industrialization

• An economy that relies on advanced financial systems

Which of the following is a key feature of a subsistence economy?

• Production of goods for profit

• Export of large quantities of goods

• Minimal surplus for trade

• Use of modern technology in production

What is barter?

• The use of money to buy goods

• The exchange of goods and services without money

• A form of modern currency

• A system for saving money

What is one major limitation of the barter system?

• It is easy to use for international trade

• It requires a double coincidence of wants

• It is more efficient than using money

• It simplifies the exchange of services

Which of the following is an example of a barter trade?

• A teacher paying for groceries with a credit card

• A farmer exchanging corn for fish

• A customer buying a car with a loan

• A shopkeeper selling goods for cash

What is one of the main reasons money replaced barter?

• Money is difficult to counterfeit

• Barter was outlawed in most countries

• Money eliminates the need for a double coincidence of wants

• Money is harder to divide into smaller amounts

Which of the following is NOT a characteristic of money?

• Durability

• Divisibility

• Double coincidence of wants

• Portability

Why is scarcity an important characteristic of money?

• It ensures that money can be divided into smaller units

• It makes sure that money remains valuable because it is limited in supply

• It allows for the easy transportation of money

• It ensures that money does not deteriorate over time

Which characteristic of money means it should last a long time and not wear out easily?

• Divisibility

• Acceptability

• Durability

• Portability

Which of the following is considered an early form of money?

• Digital currency

• Credit cards

• Precious metals like gold and silver

• Stock options