Functions of Money
Ch.11 Vocabulary
4 Characteristics of Money
Factors of Production
Miscellaneous
100
Medium of exchange, measure of value, and store of value.
What are the functions of money?
100
Something that performs the function of money and has alternative, nonmonetary uses.
What is commodity money?
100
Portability, Durability, Divisibility, Limited Availability.
What are the four characteristics of money?
100
Land, labor, capital, and entrepreneurship.
What are the 4 factors of production?
100
Basic requirement for survival and includes food, clothing, and shelter.
What is a need?
200
Anything that is readily acceptable as payment.
What is medium of exchange?
200
Something that serves as money but has no other important uses.
What is fiat money?
200
Easy to transfer between people.
What is portability?
200
Natural resources not created by humans.
What is land?
200
A way of expressing a need.
What is a want?
300
Serve as a unit of account to help us compare relative values of goods.
What is measure of value?
300
Trade of one item for another.
What is barter?
300
Ability to hold up to handling.
What is durability?
300
Tools, equipment, machinery, and factories used in the production of goods and services.
What is capital?
300
Products with zero opportunity costs.
What are free products?
400
Provides a way of converting goods and services into an easily storable form.
What is store of value?
400
A mechanism designed to create money that has the 4 characteristics of money.
What is monetary standard?
400
Ability to be divided into smaller units so that it can cover any type of transaction.
What is divisibility?
400
People with all their efforts, abilities, and skills.
What is labor?
400
An item that is economically useful or satisfies an economic want.
What is a good?
500
Allowing consumers to compare the value of a necklace and a ring through dollar amounts.
What is measure of value?
500
Wanting better possessions and more money.
What is economic growth?
500
Ability to be scarce in order to have value.
What is limited availability?
500
Innovators responsible for much of the change in the economy.
What is entrepreneurship?
500
Goods intended for final use by individuals.
What are consumer goods?
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