What Is Money? Question Preview (ID: 61515)
Econ Mini Unit #1.
TEACHERS: click here for quick copy question ID numbers.
What is the “double coincidence of wants’?
a) When two parties have goods to trade and one party does not want the other’s trade good
b) When two parties have goods to trade and agree to trade one for the other.
c)
d)
What is the solution to the “double coincidence of wants’?
a) Bartering
b) Money
c)
d)
The function of money that solves the ‘double coincidence of wants’ is as a
a) Medium of exchange (commonly accepted method of paying for things)
b) Long term store of value
c)
d)
What problem does money solve as a medium of exchange that replaces goods like meat or crops?
a) People don’t need meat or crops
b) Assets like meat or crops don’t last forever
c)
d)
Because money lasts a long time, it is a better _______ than a physical trade-good like meat or crops.
a) store of value
b) product
c)
d)
How has money solved disagreements about the value of assets?
a) By creating ‘units of account’, or prices
b) By eliminating the need for negotiation
c)
d)
In economic terms, what is supply?
a) How much, and how many, people want to buy a good or service
b) The total amount of a specific good or service that is available to consumers
c)
d)
In economic terms, what is demand?
a) The total amount of a specific good or service that is available to consumers
b) How much, and how many, people want to buy a good or service
c)
d)
How can supply and demand impact prices?
a) Greater demand can lead to higher prices
b) Greater supply can lead to higher prices
c)
d)
What is equilibrium price?
a) The price at which supply meets demand
b) When prices are too high for consumers
c)
d)
What is ‘fiat’ money?
a) Money that I can use for things other than paying for goods and services.
b) Money that has no intrinsic value in itself; it only has value because we have all agreed that it does
c)
d)
Higher prices mean money is worth ______
a) Less
b) More
c)
d)
Lower prices mean money is worth ______
a) Less
b) More
c)
d)
More money in circulation means ______ prices
a) Higher
b) Lower
c)
d)
Less money in circulation means ______ prices
a) Higher
b) Lower
c)
d)
What is the CPI?
a) Consumer Price Index
b) Cardiopulmonary Resuscitation
c)
d)
What does the CPI measure?
a) The cost of health care
b) The average change in price, over time, of consumer goods and services
c)
d)
Play Games with the Questions above at ReviewGameZone.com
To play games using the questions from above, visit ReviewGameZone.com and enter game ID number: 61515 in the upper right hand corner or click here.
To play games using the questions from above, visit ReviewGameZone.com and enter game ID number: 61515 in the upper right hand corner or click here.
TEACHERS / EDUCATORS
Log In | Sign Up / Register
Log In | Sign Up / Register