What are the functions of money

Assignment Help Microeconomics
Reference no: EM13688130

8. For 2,000 years on the far away island of Yap in Micronesia, located in the Pacific Ocean, the inhabitants have been using giant stones as money (Note: this is a true story)
a) What are the functions of money? Can these stones fulfill all or partially the functions of money?
b) Because the stones are worthless when broken, the islanders leave the larger ones where they are and simply take note of the fact that ownership has changed. How is this similar to paying by checks?

Reference no: EM13688130

Questions Cloud

The owner of a small chain of gasoline stations : The owner of a small chain of gasoline stations
A firm uses only labor and capital to produce output : A firm uses only labor and capital to produce output
The total of the amounts invested in equipment : The total of the amounts invested in equipment
What would be the internal rate of return for the project : What would be the internal rate of return for the project
What are the functions of money : What are the functions of money
The commercial bank balance sheet : What changes happen to the commercial bank's balance sheet?
Are credit cards or debit cards money : Are credit cards or debit cards money?
The production technology is fully characterized : The production technology is fully characterized
What is the inflation rate in 2009 : What is the inflation rate in 2009

Reviews

Write a Review

Microeconomics Questions & Answers

  Calculate the average variable cost for brian and kims firm

Calculate the following for Brian and Kim's firm

  Each consumer demand in equilibrium

How much of each good does each consumer demand in equilibrium?

  Increase production of civilian goods without decreasing

suppose the united states produces two goods civilian goods and government goods and that is all that they produce. ok

  Chinas present account surplus implies that china added

consider the following statement chinas current account surplus implies that china has added more to global supply of

  What price does the firm charge its customers by what

a firm has 2000000 in sales a lerner index of 0.56 and a marginal cost of 35 and competes against 900 other firms in

  Describe the purpose of antitrust laws

The consumption of alcohol is often cited as an example of a negative externality. Explain a situation in which alcohol would be considered a negative externality. 3. Describe the purpose of antitrust laws. What do they accomplish.

  Is the marginal social cost of the activity greater

Is the marginal social cost of the activity greater than or equal to the marginal cost to the individual Consequently, without intervention, will there be too little or too much(relative to what would be socially optimal) of this activity

  Cost-output relationships

For each of following cost-output relationships, explain the shape (U-shape, decreasing, increasing, constant) of the average total cost and marginal cost functions

  Purchases included in calculation of gross domestic product

Adam's Ribs in downtown Chicago buys $10,000 worth of beef ribs, $25,000 worth of pork ribs, and $8,000 worth of napkins each month. Are these purchases included in the calculation of gross domestic product

  Question on optimal pricing strategy

Optimal pricing strategy varies significantly across different market structures. The pricing guidelines in a monopoly market are relatively straightforward. Since the company is the only producer offering the product, it can mark-up the price as ..

  Compute the expected value of x

Find the probability that on a given Tuesday more than 30 students will be absent and compute the expected value of X

  Schedule slopes downward

Agree or disagree and describe. The AD schedule slopes downward because real income rises as the price level declines and everybody buys more as the real income rises.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd