ECON 2035 Chapter 2: ECON 2035 Chapter : ECON 2035 Chapter : ECON 2035 Chapter : econ 2019 exam 1 chapter 2
Document Summary
Money is anything that is generally accepted as payment for goods and services or in the settlement of debts. Barter is a system of exchange in which individuals trade goods and services directly for other goods and services. Transaction costs transaction costs are expenses incurred when buying or selling a good or service. Transaction costs represent the labor required to bring a good or service to market, giving rise to entire industries dedicated to facilitating exchanges. Commodity money is a good used as money that also has value independent of its use as money. Specialization occurs when individuals produce the goods or services for which they have relatively the best ability. Medium of exchange is something that is generally accepted as payment for goods and services. Unit of account is a way of measuring value in an economy in terms of money.