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?

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 Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter14: Money And Banking

Section14.1: The Functions And Characteristics Of Money

Problem 5R

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Question

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?

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