ch13 - ch13 Student: _ 1. Barter: A. Makes market...

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ch13 Student: ___________________________________________________________________________ 1. Barter: A. Makes market transactions easier and less time consuming. B. Is considered to be an efficient process for an economy. C. Is the direct exchange of one good or service for another. D. Requires the use of gold to assess value. 2. Which of the following is not true about barter? A. It involves the direct exchange of one good or service for another. B. It is more likely to occur if people lose faith in a nation's currency. C. It is considered to be less efficient for an economy than the use of money. D. It allows people to obtain more goods than they can using money. 3. Professor Williams tutors her next-door neighbor's son in economics. Instead of paying her for this service, the neighbor washes the professor's car. This is an example of: A. A market transaction. B. Barter. C. A monetary transaction. D. A store of value. 4. Reggie fixes his friend's car and the friend cleans his house instead of paying him. In economics, this is referred to as: A. A market transaction. B. An efficient exchange. C. Barter. D. A swap. 5. In order to simplify market transactions, an economy must use: A. U.S. dollars. B. A form of money. C. Barter. D. Gold. 6. Historically in the United States, money has included all of the following except: A. Grain. B. Fish. C. Milk. D. Furs. 7. Which of the following has not served as a form of money for the United States? A. Eggs B. Gun powder C. Tobacco D. Spanish gold coins 8. Which of the following is not true about money? A. It promotes the specialization of labor. B. It is a mechanism for transforming current income into future purchases. C. It must be minted by the government in order to have value. D. It facilitates the continuous series of exchanges that characterize a market economy.
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9. Which of the following is not an essential characteristic of money? A. It serves as a benchmark for barter. B. It serves as a store of value. C. It serves as a medium of exchange. D. It serves as a standard of value. 10. Which of the following is not an essential characteristic of money? A. It is a store of value. B. It is backed by gold or silver. C. It is a standard of value. D. It is a medium of exchange. 11. When money is used to pay for goods and services it is functioning as a: A. Store of value. B. Standard of value. C. Medium of exchange. D. Mechanism for accounting. 12. Money is functioning as a medium of exchange when you: A. Buy lunch at a fast food restaurant for yourself and your friend. B. Use it to compare the cost of a steak dinner to the cost of a hamburger. C. Decide to save your cash for gas and eat leftover pizza for dinner. D. Borrow a DVD from your friend and she borrows your textbook. 13. Money is functioning as a medium of exchange if you:
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This note was uploaded on 01/24/2012 for the course BIOLOGY 1000 taught by Professor Joseph during the Fall '11 term at St. John's.

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ch13 - ch13 Student: _ 1. Barter: A. Makes market...

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