Asked by Vickie Feazelle on Jun 13, 2024
Verified
The existence of money leads to
A) greater specialization in production, but not to a higher standard of living.
B) a higher standard of living, but not to greater specialization.
C) greater specialization and to a higher standard of living.
D) neither greater specialization nor to a higher standard of living.
Specialization In Production
The process by which individuals, businesses, or countries focus on producing a narrow range of goods or services to gain greater efficiencies.
Standard Of Living
Represents the level of wealth, comfort, material goods, and necessities available to a person, community, or society.
- Learn about the core purposes of money and its pivotal significance in economic activities.
- Clarify the idea behind monetary policy and its consequences on the availability of money.
Verified Answer
GK
Gilla KavithaJun 17, 2024
Final Answer :
C
Explanation :
The existence of money facilitates trade and allows individuals to specialize in the production of goods or services in which they have a comparative advantage. This specialization leads to more efficient production, which in turn can lead to a higher standard of living as resources are used more effectively and a greater quantity and variety of goods and services can be produced and consumed.
Learning Objectives
- Learn about the core purposes of money and its pivotal significance in economic activities.
- Clarify the idea behind monetary policy and its consequences on the availability of money.