Characteristics of money
what is the characterist that makes money last.
durable
what does the p stand for
define the problem
what is the function of money that sovles double coincidence of wants
exchange of money
define needs
things that are necessary for survival
define services
work that one person does for another
what is the characteristic that makes money hard to make
scarce
what does the a stand for
which function of money solves the problem of assets don't last
store of value
define want
things that we desire, not necessary for survival
define consumers
person who buys things for personal use
what is the characteristic of money that makes it able to be subdivided.
divisible/countable
what does the c stand for
state your criteria
which function of money solves the problem disputes over value
unit of account
define scarcity
not enough resources for needs and wants
define producer
person who provides service or makes goods
what is the characteristic that makes money easy to move
portable
what does the e stand for
evaluate your alternatives
how do you solve the problem: My biggest asset is a cow, and the cow is getting old. So I slaughter it, but I can’t eat all the meat.
Sell the cow and save the money for the future.
define economics
the study of how people satisfy their unlimited wants with limited resources
define incentives
benefits ordered to encourage people to act in certain ways
what is fiat money
money that works only because we believe it does
what does the d stand for
make a decision
what is trading a sheep for money an example of
medium of exchange
define goods
items that cane be bought
define utility
satisfaction gained from the use of a good or service