ECON 312 Exam 1 Gueye questions with
complete solutions
anything that can be used for the purchase of goods and services - VERIFIED ANSWER-money
piece of property that carries value - VERIFIED ANSWER-asset
assets-liabilities - VERIFIED ANSWER-wealth
3 main function of money - VERIFIED ANSWER--medium of exchange
-unit of account
-store of value
primary function of money - VERIFIED ANSWER-purchasing goods and services
means taking a good or service in exchange for money - VERIFIED ANSWER-"buying" or "purchasing"
when good/service is traded for a good/service - VERIFIED ANSWER-barter trade system
in order for the barter trade system to work there needs to always be.. - VERIFIED ANSWER-double
coincidence of wants
for double coincidence to occur (2) - VERIFIED ANSWER--individual A must have what individual B
needs
-individual B must have what individual A needs
an economic system with money is more __________ - VERIFIED ANSWER-efficient
, money is also a unit of measurement; it measures __________ - VERIFIED ANSWER-value
the usefulness of a good/service - VERIFIED ANSWER-value in use
the price of a good/service - VERIFIED ANSWER-value in exchange
the number of prices increases exponentially with the number of... - VERIFIED ANSWER-goods in the
economy
number of prices equals - VERIFIED ANSWER-[n(n-1)]/2
how easy it is to turn an asset int a means of exchange - VERIFIED ANSWER-liquidity
most liquid asset - VERIFIED ANSWER-cash
most to least liquid assets - VERIFIED ANSWER-cash->debit card->checks->Amazon stock->private jet
3 motives for holding money - VERIFIED ANSWER--transaction
-precaution
-speculation
purchase the goods and services that we need - VERIFIED ANSWER-transaction
be ready for unforeseen circumstances - VERIFIED ANSWER-precaution
there might be better investment opportunities in the future and only investors with enough liquidity
will take advantage of them - VERIFIED ANSWER-speculation
for any item to be effectively used as money, the following criteria need to be met (6) - VERIFIED
ANSWER--easy standardization
complete solutions
anything that can be used for the purchase of goods and services - VERIFIED ANSWER-money
piece of property that carries value - VERIFIED ANSWER-asset
assets-liabilities - VERIFIED ANSWER-wealth
3 main function of money - VERIFIED ANSWER--medium of exchange
-unit of account
-store of value
primary function of money - VERIFIED ANSWER-purchasing goods and services
means taking a good or service in exchange for money - VERIFIED ANSWER-"buying" or "purchasing"
when good/service is traded for a good/service - VERIFIED ANSWER-barter trade system
in order for the barter trade system to work there needs to always be.. - VERIFIED ANSWER-double
coincidence of wants
for double coincidence to occur (2) - VERIFIED ANSWER--individual A must have what individual B
needs
-individual B must have what individual A needs
an economic system with money is more __________ - VERIFIED ANSWER-efficient
, money is also a unit of measurement; it measures __________ - VERIFIED ANSWER-value
the usefulness of a good/service - VERIFIED ANSWER-value in use
the price of a good/service - VERIFIED ANSWER-value in exchange
the number of prices increases exponentially with the number of... - VERIFIED ANSWER-goods in the
economy
number of prices equals - VERIFIED ANSWER-[n(n-1)]/2
how easy it is to turn an asset int a means of exchange - VERIFIED ANSWER-liquidity
most liquid asset - VERIFIED ANSWER-cash
most to least liquid assets - VERIFIED ANSWER-cash->debit card->checks->Amazon stock->private jet
3 motives for holding money - VERIFIED ANSWER--transaction
-precaution
-speculation
purchase the goods and services that we need - VERIFIED ANSWER-transaction
be ready for unforeseen circumstances - VERIFIED ANSWER-precaution
there might be better investment opportunities in the future and only investors with enough liquidity
will take advantage of them - VERIFIED ANSWER-speculation
for any item to be effectively used as money, the following criteria need to be met (6) - VERIFIED
ANSWER--easy standardization
