ECN 204 Chapter 10: Chapter 10.docx

Economists use the term “money” to refer to

a. all wealth.

b. all assets, including real assets and financial assets.

c. all financial assets, but not real assets.

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

The major shortcoming of a barter economy is

a. The requirement of double coincidence of wants.

b.The requirement of specialization and exchange.

c.That goods and services are not traded.

d. That money loses value from inflation.

The major shortcoming of a barter economy is

A. the requirement of a double coincidence of wants.

B. the requirement of specialization and exchange.

C. that goods and services are not traded.

D. that money loses value from inflation.