Which are considered as money.

Question

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Answer 1

Question

Chapter 34, Problem 1FT

To determine

Which are considered as money.

Expert Solution & Answer

Answer to Problem 1FT

Choices 'a' and 'c'.

Explanation of Solution

The exchange of goods and services takes place in the economy with a medium of exchange. The widely accepted means of transaction is money. There are many items, which are considered as money such as the paper currencies and metallic coins and so on.

Option (a):

Cash is a very widely accepted and used medium of exchange. It has the highest liquidity. It helps to carry on the transaction easily in the market. Thus, the society accepts the cash for goods and services. Therefore, it comes under the definition of a widely accepted means of payment. Hence, it is considered as money.

Option (c):

The checking account balance is the balance that the people save in the bank accounts. They are also highly liquid and they can be accessed with the checks from the banks. Thus, people are ready to accept the checking account balance as a medium of payment. Hence , it is also considered as money.

Option (b):

The records are good to hear. Some are ready to accept them as payments for the goods and services that they provide. However, majority of the society will not accept them as payment. It is due to the very lower liquidity of the records. Thus, they are not widely accepted means of payment and so they are not considered as money.

Option (d):

The auto-detailing works are very hard to be converted into accepted means of payment. Therefore, it has very lower liquidity and is widely accepted by people other than the auto-enthusiastic people. Hence, it is not considered as money.

Option (e):

The continental dollars are widely accepted means of payment after the period of the war-era. However, they have lost its prestige and now they are not used as a medium of exchange. Therefore, although they were once accepted as money, now they are not.

Economics Concept Introduction

Concept introduction:

Money: Money is a widely used medium of exchange.

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Answer

M” method Given the following model, solve by the method of “M”. (see image)

As indicated in the attached image, U.S. earnings for high- and low-skill workers as measured by educational attainment began diverging in the 1980s. The remaining questions in this problem set use the model for the labor market developed in class to walk through potential explanations for this trend. 1. Assume that there are just two types of workers, low- and high-skill. As a result, there are two labor markets: supply and demand for low-skill workers and supply and demand for high-skill workers. Using two carefully drawn labor-market figures, show that an increase in the demand for high skill workers can explain an increase in the relative wage of high-skill workers. 2. Using the same assumptions as in the previous question, use two carefully drawn labor-market figures to show that an increase in the supply of low-skill workers can explain an increase in the relative wage of high-skill workers.

Answer 2

Question

Chapter 34, Problem 1FT

To determine

Which are considered as money.

Expert Solution & Answer

Answer to Problem 1FT

Choices 'a' and 'c'.

Explanation of Solution

The exchange of goods and services takes place in the economy with a medium of exchange. The widely accepted means of transaction is money. There are many items, which are considered as money such as the paper currencies and metallic coins and so on.

Option (a):

Cash is a very widely accepted and used medium of exchange. It has the highest liquidity. It helps to carry on the transaction easily in the market. Thus, the society accepts the cash for goods and services. Therefore, it comes under the definition of a widely accepted means of payment. Hence, it is considered as money.

Option (c):

The checking account balance is the balance that the people save in the bank accounts. They are also highly liquid and they can be accessed with the checks from the banks. Thus, people are ready to accept the checking account balance as a medium of payment. Hence , it is also considered as money.

Option (b):

The records are good to hear. Some are ready to accept them as payments for the goods and services that they provide. However, majority of the society will not accept them as payment. It is due to the very lower liquidity of the records. Thus, they are not widely accepted means of payment and so they are not considered as money.

Option (d):

The auto-detailing works are very hard to be converted into accepted means of payment. Therefore, it has very lower liquidity and is widely accepted by people other than the auto-enthusiastic people. Hence, it is not considered as money.

Option (e):

The continental dollars are widely accepted means of payment after the period of the war-era. However, they have lost its prestige and now they are not used as a medium of exchange. Therefore, although they were once accepted as money, now they are not.

Economics Concept Introduction

Concept introduction:

Money: Money is a widely used medium of exchange.

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 34, Problem 1FT

To determine

Which are considered as money.

Expert Solution & Answer

Answer to Problem 1FT

Choices 'a' and 'c'.

Explanation of Solution

The exchange of goods and services takes place in the economy with a medium of exchange. The widely accepted means of transaction is money. There are many items, which are considered as money such as the paper currencies and metallic coins and so on.

Option (a):

Cash is a very widely accepted and used medium of exchange. It has the highest liquidity. It helps to carry on the transaction easily in the market. Thus, the society accepts the cash for goods and services. Therefore, it comes under the definition of a widely accepted means of payment. Hence, it is considered as money.

Option (c):

The checking account balance is the balance that the people save in the bank accounts. They are also highly liquid and they can be accessed with the checks from the banks. Thus, people are ready to accept the checking account balance as a medium of payment. Hence , it is also considered as money.

Option (b):

The records are good to hear. Some are ready to accept them as payments for the goods and services that they provide. However, majority of the society will not accept them as payment. It is due to the very lower liquidity of the records. Thus, they are not widely accepted means of payment and so they are not considered as money.

Option (d):

The auto-detailing works are very hard to be converted into accepted means of payment. Therefore, it has very lower liquidity and is widely accepted by people other than the auto-enthusiastic people. Hence, it is not considered as money.

Option (e):

The continental dollars are widely accepted means of payment after the period of the war-era. However, they have lost its prestige and now they are not used as a medium of exchange. Therefore, although they were once accepted as money, now they are not.

Economics Concept Introduction

Concept introduction:

Money: Money is a widely used medium of exchange.

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 34, Problem 1FT

To determine

Which are considered as money.

Expert Solution & Answer

Answer to Problem 1FT

Choices 'a' and 'c'.

Explanation of Solution

The exchange of goods and services takes place in the economy with a medium of exchange. The widely accepted means of transaction is money. There are many items, which are considered as money such as the paper currencies and metallic coins and so on.

Option (a):

Cash is a very widely accepted and used medium of exchange. It has the highest liquidity. It helps to carry on the transaction easily in the market. Thus, the society accepts the cash for goods and services. Therefore, it comes under the definition of a widely accepted means of payment. Hence, it is considered as money.

Option (c):

The checking account balance is the balance that the people save in the bank accounts. They are also highly liquid and they can be accessed with the checks from the banks. Thus, people are ready to accept the checking account balance as a medium of payment. Hence , it is also considered as money.

Option (b):

The records are good to hear. Some are ready to accept them as payments for the goods and services that they provide. However, majority of the society will not accept them as payment. It is due to the very lower liquidity of the records. Thus, they are not widely accepted means of payment and so they are not considered as money.

Option (d):

The auto-detailing works are very hard to be converted into accepted means of payment. Therefore, it has very lower liquidity and is widely accepted by people other than the auto-enthusiastic people. Hence, it is not considered as money.

Option (e):

The continental dollars are widely accepted means of payment after the period of the war-era. However, they have lost its prestige and now they are not used as a medium of exchange. Therefore, although they were once accepted as money, now they are not.

Economics Concept Introduction

Concept introduction:

Money: Money is a widely used medium of exchange.

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 34, Problem 1FT

To determine

Which are considered as money.

Expert Solution & Answer

Answer to Problem 1FT

Choices 'a' and 'c'.

Explanation of Solution

The exchange of goods and services takes place in the economy with a medium of exchange. The widely accepted means of transaction is money. There are many items, which are considered as money such as the paper currencies and metallic coins and so on.

Option (a):

Cash is a very widely accepted and used medium of exchange. It has the highest liquidity. It helps to carry on the transaction easily in the market. Thus, the society accepts the cash for goods and services. Therefore, it comes under the definition of a widely accepted means of payment. Hence, it is considered as money.

Option (c):

The checking account balance is the balance that the people save in the bank accounts. They are also highly liquid and they can be accessed with the checks from the banks. Thus, people are ready to accept the checking account balance as a medium of payment. Hence , it is also considered as money.

Option (b):

The records are good to hear. Some are ready to accept them as payments for the goods and services that they provide. However, majority of the society will not accept them as payment. It is due to the very lower liquidity of the records. Thus, they are not widely accepted means of payment and so they are not considered as money.

Option (d):

The auto-detailing works are very hard to be converted into accepted means of payment. Therefore, it has very lower liquidity and is widely accepted by people other than the auto-enthusiastic people. Hence, it is not considered as money.

Option (e):

The continental dollars are widely accepted means of payment after the period of the war-era. However, they have lost its prestige and now they are not used as a medium of exchange. Therefore, although they were once accepted as money, now they are not.

Economics Concept Introduction

Concept introduction:

Money: Money is a widely used medium of exchange.

Answer 6

Chapter 34, Problem 1FT

To determine

Which are considered as money.

Expert Solution & Answer

Answer to Problem 1FT

Choices 'a' and 'c'.

Explanation of Solution

The exchange of goods and services takes place in the economy with a medium of exchange. The widely accepted means of transaction is money. There are many items, which are considered as money such as the paper currencies and metallic coins and so on.

Option (a):

Cash is a very widely accepted and used medium of exchange. It has the highest liquidity. It helps to carry on the transaction easily in the market. Thus, the society accepts the cash for goods and services. Therefore, it comes under the definition of a widely accepted means of payment. Hence, it is considered as money.

Option (c):

The checking account balance is the balance that the people save in the bank accounts. They are also highly liquid and they can be accessed with the checks from the banks. Thus, people are ready to accept the checking account balance as a medium of payment. Hence , it is also considered as money.

Option (b):

The records are good to hear. Some are ready to accept them as payments for the goods and services that they provide. However, majority of the society will not accept them as payment. It is due to the very lower liquidity of the records. Thus, they are not widely accepted means of payment and so they are not considered as money.

Option (d):

The auto-detailing works are very hard to be converted into accepted means of payment. Therefore, it has very lower liquidity and is widely accepted by people other than the auto-enthusiastic people. Hence, it is not considered as money.

Option (e):

The continental dollars are widely accepted means of payment after the period of the war-era. However, they have lost its prestige and now they are not used as a medium of exchange. Therefore, although they were once accepted as money, now they are not.

Economics Concept Introduction

Concept introduction:

Money: Money is a widely used medium of exchange.

Answer 7

Chapter 34, Problem 1FT

To determine

Which are considered as money.

Answer 8

Expert Solution & Answer

Answer to Problem 1FT

Choices 'a' and 'c'.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

The exchange of goods and services takes place in the economy with a medium of exchange. The widely accepted means of transaction is money. There are many items, which are considered as money such as the paper currencies and metallic coins and so on.

Option (a):

Cash is a very widely accepted and used medium of exchange. It has the highest liquidity. It helps to carry on the transaction easily in the market. Thus, the society accepts the cash for goods and services. Therefore, it comes under the definition of a widely accepted means of payment. Hence, it is considered as money.

Option (c):

The checking account balance is the balance that the people save in the bank accounts. They are also highly liquid and they can be accessed with the checks from the banks. Thus, people are ready to accept the checking account balance as a medium of payment. Hence , it is also considered as money.

Option (b):

The records are good to hear. Some are ready to accept them as payments for the goods and services that they provide. However, majority of the society will not accept them as payment. It is due to the very lower liquidity of the records. Thus, they are not widely accepted means of payment and so they are not considered as money.

Option (d):

The auto-detailing works are very hard to be converted into accepted means of payment. Therefore, it has very lower liquidity and is widely accepted by people other than the auto-enthusiastic people. Hence, it is not considered as money.

Option (e):

The continental dollars are widely accepted means of payment after the period of the war-era. However, they have lost its prestige and now they are not used as a medium of exchange. Therefore, although they were once accepted as money, now they are not.