In SpringbokVille pieces of paper called bucks are the only item that buyers give to sellers when they purchase goods and services, so it would be common to use, say, 300 bucks to buy a rugby jersey. Prices are posted in terms of bokkies, so you might walk into a supermarket and see that, today, a rugby ball is worth 40 bokkies. Bokkies decay overnight, so no bokkie has any value for more than 24 hours. In Springbok Ville 1. the bokkie fulfils the unit of account function, but it cannot serve as a store of value. II. bucks fulfil the medium of exchange and unit of account functions. Select one: O a Statement I is correct. Ob Both statements I and II are incorrect. Oc Statement II is correct. d Both statements I and II are correct.

In SpringbokVille pieces of paper called bucks are the only item that buyers give to sellers when they purchase goods and services, so it would be common to use, say, 300 bucks to buy a rugby jersey. Prices are posted in terms of bokkies, so you might walk into a supermarket and see that, today, a rugby ball is worth 40 bokkies. Bokkies decay overnight, so no bokkie has any value for more than 24 hours. In Springbok Ville 1. the bokkie fulfils the unit of account function, but it cannot serve as a store of value. II. bucks fulfil the medium of exchange and unit of account functions. Select one: O a Statement I is correct. Ob Both statements I and II are incorrect. Oc Statement II is correct. d Both statements I and II are correct.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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