Chapter_13 - Chapter 13 2. During World War II, American...

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Chapter 13 2. During World War II, American prisoners of war used cigarettes as a form of money. Cigarettes could be used to purchase anything that was for sale in the prison camps. Practically, however, money should possess the qualities of durability, portability, divisibility, uniformity, easy of recognition, and scarcity. In terms of these six criteria, discuss the advantages and disadvantages of cigarette money in this prison economy. - If money did not exist, the only way that a person could acquire things would be to exchange something of value for the desired items. Such an exchange is called barter. - The invention of money eliminated the problems of the barter economy. Money is anything that is generally accepted in payment for goods and services. - During World War II, American prisoners of war developed a mini-economy based on the use of cigarettes as a kind of money. - Anything can be called money if it is generally accepted by society. But good money will possess the six characteristics: durability, portability, divisibility,
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This note was uploaded on 05/03/2008 for the course POL 101 taught by Professor Sekercioglu during the Spring '08 term at SUNY Stony Brook.

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