Economics Explain the logic behind Say's law and how it really only makes sense in a barter economy or where money is simply an aid to exchange.
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- Briefly discuss the inconveniences of the barter economy. Write down the functions of money? Discuss those functions based on both money-commodity and money-debt approaches.Which od the following statement is true about money? -it makes markets more efficient than barter -it requires a double coincidence of wants -it is not part of the circular flow -it decreases the efficiency of the market compared to barter Assume that Andy and Henry, without trading with each other, will produce and consume the following number of steel bars and ketchup bottles. The Gains from Trade Without trade Person Good Production Consumption Gains from Trade Andy Steel bars 60 60 +35 Btl. Ketchup 60 60 +15 Henry Steel bars 20 20 +5 Btl. Ketchup 20 20 +5 Now, Assume that both Andy and Henry decide to specialize, and then Andy trades 25 steel bars to Henry for 75 Btls. ketchup. This outcome is shown in the table below. Compared to the result without trade, what are the gains from trade that Andy experiences when he and Henry specialize and trade? The Gains from Trade With specialization Person Good Production…How does money overcome the problem of barter system explain?
- the main difficulties due to which the barter system was failed. Also list the primary and secondary functions performed by money in today’s globally connected world?Which of the following is are the three jobs of money? (Check all that apply) A. Medium of exchange B. Standard of Value C. Divisible D. Store of Value E. PortableIs barter becoming more or less prevalent in the US economy? What are some underground market activities that are considered legal? What are some underground market activities that are considered illegal?
- Economists have documented Pacific island economies in which large rocks and boulders were used as money. While this may work for a group of people who only transact with others on the island, the rocks would not be a useful form of money in the world economy because: A. Large rocks are not easily standardized B. Large rocks are not easily divisible C. Large rocks are not easy to carry D. All of the above are trueAll else constant, if the GDP in an economy decreases then: demand for money increases. demand for money decreases. the quantity demanded for money increases. the quantity demanded for money decreases.Which of the following is NOT a function of money? A. A medium of exchange B. A measure of inflation C. A store of value D. A unit of account Which function of money is best served by bitcoin? A. A medium of exchange B. A unit of account C. A store of value The ease at which an asset can be converted into a medium of exchange is known as A. Inflation B. Profitability C. Liquidity D. Wealth Economists have documented Pacific island economies in which large rocks and boulders were used as money. While this may work for a group of people who only transact with others on the island, the rocks would not be a useful form of money in the world economy because: A. Large rocks are not easily standardized B. Large rocks are not easily divisible C. Large rocks are not easy to carry D. All of the above are true In the mid 1800's, grain sellers in Chicago…
