Consider the following example of bartering: 1 10-ounce T-bone steak can be traded for 5 soft drinks. 1 soft drink can be traded for 10 apples. 100 apples can be traded for a T-shirt. 5 T-shirts can be exchanged for 1 textbook. It takes 4 textbooks to get 1 VCR. How many 10-ounce T-bone steaks could you exchange for 1 textbook? How many soft drinks? How many apples? State the price of T-shirts in terms of apples, textbooks, and soft drinks. Why do you think we use money as a unit of account?

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter20: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
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  1. Consider the following example of bartering:

    1 10-ounce T-bone steak can be traded for 5 soft drinks.
    1 soft drink can be traded for 10 apples.
    100 apples can be traded for a T-shirt.
    5 T-shirts can be exchanged for 1 textbook.
    It takes 4 textbooks to get 1 VCR.
    1. How many 10-ounce T-bone steaks could you exchange for 1 textbook? How many soft drinks? How many apples?

    2. State the price of T-shirts in terms of apples, textbooks, and soft drinks.

    3. Why do you think we use money as a unit of account?

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