Unformatted text preview: uch orange production would be lost if
we used a majority of the acreage in south Florida to
• We allow Nebraska (a state in which oranges cannot
grow) to produce wheat and trade wheat with Florida
for oranges so the people of both regions are better off
(and more productive). Chapter 2 14 Learning Objective 2-2 Slide
15 Use of Money
Market systems rely heavily on the use of money due
to the functions money performs in an economy.
Medium of exchange is one of the most basic
functions of money in that it makes trade easier to
accomplish, prevents the need for barter, and
prevents people from having to be in the same place
with what one another needs at a specific time
(coincidence of wants). Chapter 2 Learning Objective 2-2 Geographical location is important when it comes to
specialization, too. Consider the example of the
locations available for the production of wheat,
potatoes, and oranges from your text.
• Nebraska has land and climate making it much
better suited for producing wheat, whereas Idaho
has land and climate better suited to producing
potatoes, and Florida has land and climate better
suited to producing oranges. Although each st...
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