ECON 103 Lecture Notes - Lecture 4: Marginal Utility, Financial Intermediary, Barter
2 Oct 2017
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As society expands, barter is not sufficient a form of money is necessary. Money is a medium (in the middle of exchanges) Boudreaux sells his service (teaching) to gmu in return for money. Money allows people to exchange to each other who don"t want what the other per. Money is the physical manifestation of buying power. Does not lose value as it is divided (unlike animals) Saving and banking er buy wine for a teaching person is offering/selling. First forms of saving were forgoing current consumption (bananas) and saving them up to h but in a monetary society, we save money instead of goods. Nigel sells his pig for one pound of gold. More useful because he can divide his gold into pieces of equal value (unlike h. Nigel is worried about his gold being stolen, so his friend william starts a gold wareh. William gives nigel a receipt acknowledging that nigel deposited one pound of gold.
