The Basics of Earning

What is bartering?

• The use of money to buy goods and services

• The exchange of goods and services without the use of money

• The saving of money for future use

• The production of goods for personal use

What is one possible problem with bartering?

• There is no need for any goods or services

• There is no common medium of exchange

• There is an abundance of resources

• There is too much money in circulation

Which of the following is NOT one of the three critical elements that money provides in an economy?

• A medium of exchange

• A unit of account

• A store of value

• A means of production

What does a medium of exchange mean?

• Money allows prices to be assigned to everything in an economy.

• Money can be saved and does not have to be used immediately.

• Money is anything that people are willing to assign value to and accept as payment.

• Money helps us measure value in an economy.

What does a unit of account mean?

• Money allows prices to be assigned to everything in an economy and compared with each other.

• Money can be saved and does not have to be used immediately.

• Money is anything that people are willing to assign value to and accept as payment.

• Money provides an alternative to bartering.

Which attribute of money helps us measure value in an economy?

• A medium of exchange

• A unit of account

• A store of value

• A means of production

What does a store of value mean?

• Money allows prices to be assigned to everything in an economy.

• Money can be saved and does not have to be used immediately.

• Money is anything that people are willing to assign value to and accept as payment.

• Money helps us measure value in an economy.

Which attribute of money provides an alternative to bartering?

• A unit of account

• A store of value

• A medium of exchange

• A means of production

What is one of the functions of money that reduces everything in an economy to a number?

• Store of value

• Medium of exchange

• Unit of account

• Means of payment

Which function of money allows it to maintain value over time?

• Unit of account

• Store of value

• Medium of exchange

• Means of payment