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

Assume the United States is a large consumer of steel, able to influence the world price. DUS and SUS denote its demand and supply schedules in Figure 1. The overall (United States plus world) supply schedule of steel is denoted by SUS.+W. Figure 1 Import Tariff Levied by a Large Country Answer all questions (a-f) by referring to Figure 1 above. a) Calculate the free trade market equilibrium price, domestic consumption, and volumE Answer all questions (a-f) by referring to Figure 1 above. a) Calculate the free trade market equilibrium price, domestic consumption, and volume of steel imports by the US. [5 marks] b) Suppose the United States imposes a tariff (t) of $100 on each ton of steel imported. With the tariff, calculate the price of steel and the volume of steel imports by the US. [5 marks] c) Of the $100 tariff, how much is passed on to the US consumer via a higher price, and how much is borne by the foreign exporter? [5 marks] d) Calculate the tariff's deadweight welfare loss to…

1. A doctor quits his job, which pays $77,000 per annum, to open a non-governmental organization (NGO) to serve the needs of orphans. His annual expenses for the NGO amounts to $62,700 for food and daily supplies, $9,400 for maintenance, and $1,800 for books. What is his opportunity cost of opening the NGO? (Show working) 2. During the COVID-19 pandemic, hospitals worldwide faced severe resource constraints, including: a. Limited ICU beds b. Shortage of ventilators c. Insufficient doctors and nurses d. Lack of vaccines in early 2021 Governments and hospitals had to make critical decisions about who receives treatment first and how to allocate limited resources efficiently. In no more than 150 words and using core economic concepts of scarcity, choice and opportunity cost, how would you help your government make these critical decisions?

What is the argument about necessary evil?

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.