Chapter 14, Problem 2AA

To determine

To choose: The term that best completes the given sentence.

Explanation of Solution

The correct answer is transport.

Money offers the transaction cost problem, namely the double casualty of wanting. Money originates from a kind of commodity to a means of trade between market participants. Money should be divided into small quantities, such that people appreciate its original usage value highly enough to be able to carry or transfer in an sufficient amount quickly.

Economics Concept Introduction

Introduction: Money makes it easier to trade. The medium of is exchange known as currency. Also, its general interest has been decided by producers and consumers. If too much money is pumped into the economy during hyperinflation, it will lose value.