The meaning of money.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 14, Problem 1SQP

To determine

The meaning of money.

Expert Solution & Answer

Explanation of Solution

The barter system was a market exchange system that existed in the ancient period. According to the barter system, one commodity is exchanged for another commodity in the market. Thus, there should be double co-incidence of needs for the exchange to take place in the market. This problem was corrected with the establishment of money. Money is anything that serves as a medium of exchange in the market, unit of account as well as the store of value in the economy. There are many forms of money such as paper currencies, metallic coins, bills, and so forth.

Thus, money is worthless on its own. It becomes worthy when it is used for the purposes stated above. However, in this case, an individual is lost in the dessert and he has a million dollars with him. However, he cannot make use of his money to do any transaction, as there is no market in the dessert, and hence the money becomes worthless. Thus, this teaches the person that money is worthless when it is not used for transaction, store of value, and unit of account purposes.

Economics Concept Introduction

Money: Money is anything that has basically three functions such as the medium of exchange, unit of account, and store of value in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

MCB MCA The figure to the right shows the marginal cost of pollution abatement for two firms, A and B. The firms were initially abating 36 units of pollution each. Now they can trade pollution permits at a price of $32. As a result, firm permits and firm B A permits. Both firms are now better off and their total saving will be (Enter your answer rounded to the nearest $ whole number.) Dollars per Unit ($) 44 32 20 The Efficiency of Tradable Pollution Permits 31 36 41 Quantity of Pollution Abatement k -6°C Mostly clear Next

The figure to the right shows the marginal costs of abatement for an industry's only two firms, A and B. These firms were initially abating 30 units of pollution (the vertical dashed line). Now they can trade permits. The market price for permits under which an efficient pollution abatement will be achieved is $ rounded to the nearest whole number.) 192 176- 160- (Enter your response 144- 128- 112- 96 80- 64- 48- 32- 16 0 0 MC MCB 10 20 30 40 50 60 70 80 90 100 110 12 Pollution Abatement -6°C Mostly clear Next

The figure shows the private and social marginal costs and the marginal benefit of producing paper. The marginal social net benefit derived from the production of paper is OA. maximized at an output level of 35 because that is where MCp equals MB. OB. maximized at an output level of 25 because that is where MCs equal MB. OC. zero at an output level of 25 because that is where MCs equals MB. OD. zero at an output level of 35 because that is where MCp equals MB Dollars per Unit 25 35 Quantity of Paper -6°C Mostly clear D=MB Next MCS MC

Answer 2

Question

Chapter 14, Problem 1SQP

To determine

The meaning of money.

Expert Solution & Answer

Explanation of Solution

The barter system was a market exchange system that existed in the ancient period. According to the barter system, one commodity is exchanged for another commodity in the market. Thus, there should be double co-incidence of needs for the exchange to take place in the market. This problem was corrected with the establishment of money. Money is anything that serves as a medium of exchange in the market, unit of account as well as the store of value in the economy. There are many forms of money such as paper currencies, metallic coins, bills, and so forth.

Thus, money is worthless on its own. It becomes worthy when it is used for the purposes stated above. However, in this case, an individual is lost in the dessert and he has a million dollars with him. However, he cannot make use of his money to do any transaction, as there is no market in the dessert, and hence the money becomes worthless. Thus, this teaches the person that money is worthless when it is not used for transaction, store of value, and unit of account purposes.

Economics Concept Introduction

Money: Money is anything that has basically three functions such as the medium of exchange, unit of account, and store of value in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 14, Problem 1SQP

To determine

The meaning of money.

Expert Solution & Answer

Explanation of Solution

The barter system was a market exchange system that existed in the ancient period. According to the barter system, one commodity is exchanged for another commodity in the market. Thus, there should be double co-incidence of needs for the exchange to take place in the market. This problem was corrected with the establishment of money. Money is anything that serves as a medium of exchange in the market, unit of account as well as the store of value in the economy. There are many forms of money such as paper currencies, metallic coins, bills, and so forth.

Thus, money is worthless on its own. It becomes worthy when it is used for the purposes stated above. However, in this case, an individual is lost in the dessert and he has a million dollars with him. However, he cannot make use of his money to do any transaction, as there is no market in the dessert, and hence the money becomes worthless. Thus, this teaches the person that money is worthless when it is not used for transaction, store of value, and unit of account purposes.

Economics Concept Introduction

Money: Money is anything that has basically three functions such as the medium of exchange, unit of account, and store of value in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 14, Problem 1SQP

To determine

The meaning of money.

Expert Solution & Answer

Explanation of Solution

The barter system was a market exchange system that existed in the ancient period. According to the barter system, one commodity is exchanged for another commodity in the market. Thus, there should be double co-incidence of needs for the exchange to take place in the market. This problem was corrected with the establishment of money. Money is anything that serves as a medium of exchange in the market, unit of account as well as the store of value in the economy. There are many forms of money such as paper currencies, metallic coins, bills, and so forth.

Thus, money is worthless on its own. It becomes worthy when it is used for the purposes stated above. However, in this case, an individual is lost in the dessert and he has a million dollars with him. However, he cannot make use of his money to do any transaction, as there is no market in the dessert, and hence the money becomes worthless. Thus, this teaches the person that money is worthless when it is not used for transaction, store of value, and unit of account purposes.

Economics Concept Introduction

Money: Money is anything that has basically three functions such as the medium of exchange, unit of account, and store of value in an economy.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 14, Problem 1SQP

To determine

The meaning of money.

Expert Solution & Answer

Explanation of Solution

The barter system was a market exchange system that existed in the ancient period. According to the barter system, one commodity is exchanged for another commodity in the market. Thus, there should be double co-incidence of needs for the exchange to take place in the market. This problem was corrected with the establishment of money. Money is anything that serves as a medium of exchange in the market, unit of account as well as the store of value in the economy. There are many forms of money such as paper currencies, metallic coins, bills, and so forth.

Thus, money is worthless on its own. It becomes worthy when it is used for the purposes stated above. However, in this case, an individual is lost in the dessert and he has a million dollars with him. However, he cannot make use of his money to do any transaction, as there is no market in the dessert, and hence the money becomes worthless. Thus, this teaches the person that money is worthless when it is not used for transaction, store of value, and unit of account purposes.

Economics Concept Introduction

Money: Money is anything that has basically three functions such as the medium of exchange, unit of account, and store of value in an economy.

Answer 6

Chapter 14, Problem 1SQP

To determine

The meaning of money.

Expert Solution & Answer

Explanation of Solution

The barter system was a market exchange system that existed in the ancient period. According to the barter system, one commodity is exchanged for another commodity in the market. Thus, there should be double co-incidence of needs for the exchange to take place in the market. This problem was corrected with the establishment of money. Money is anything that serves as a medium of exchange in the market, unit of account as well as the store of value in the economy. There are many forms of money such as paper currencies, metallic coins, bills, and so forth.

Thus, money is worthless on its own. It becomes worthy when it is used for the purposes stated above. However, in this case, an individual is lost in the dessert and he has a million dollars with him. However, he cannot make use of his money to do any transaction, as there is no market in the dessert, and hence the money becomes worthless. Thus, this teaches the person that money is worthless when it is not used for transaction, store of value, and unit of account purposes.

Economics Concept Introduction

Money: Money is anything that has basically three functions such as the medium of exchange, unit of account, and store of value in an economy.

Answer 7

Chapter 14, Problem 1SQP

To determine

The meaning of money.

Answer 8

Expert Solution & Answer

Explanation of Solution

The barter system was a market exchange system that existed in the ancient period. According to the barter system, one commodity is exchanged for another commodity in the market. Thus, there should be double co-incidence of needs for the exchange to take place in the market. This problem was corrected with the establishment of money. Money is anything that serves as a medium of exchange in the market, unit of account as well as the store of value in the economy. There are many forms of money such as paper currencies, metallic coins, bills, and so forth.

Thus, money is worthless on its own. It becomes worthy when it is used for the purposes stated above. However, in this case, an individual is lost in the dessert and he has a million dollars with him. However, he cannot make use of his money to do any transaction, as there is no market in the dessert, and hence the money becomes worthless. Thus, this teaches the person that money is worthless when it is not used for transaction, store of value, and unit of account purposes.