Asked by Rebekah Turner on Apr 26, 2024
Verified
The greater the number of different goods available in an economy,the:
A) less likely it is that a double coincidence of wants will exist,and the less likely it is that monetary exchange will develop.
B) less likely it is that a double coincidence of wants will exist,and the more likely it is that monetary exchange will develop.
C) more likely it is that a double coincidence of wants will exist,and the less likely it is that monetary exchange will develop.
D) more likely it is that a double coincidence of wants will exist,and the more likely it is that monetary exchange will develop.
E) more likely it is that individuals are producing only goods they want to consume.
Different Goods
Variety of products or items that satisfy different needs and wants or provide various forms of utility to consumers.
Double Coincidence
A situation in bartering where two parties each hold an item the other wants, enabling them to exchange these items directly without the need for money.
Monetary Exchange
The process by which goods and services are bought and sold using money as a medium of exchange.
- Examine how the diversity of goods affects the viability of both barter and monetary transactions.
Verified Answer
ZK
Zybrea KnightMay 02, 2024
Final Answer :
B
Explanation :
A double coincidence of wants refers to the situation where two parties are willing to exchange goods that the other wants. The greater the number of different goods available in an economy, the less likely it is that two parties will have a double coincidence of wants because there are more options to choose from. Therefore, it is more likely that monetary exchange will develop as a means of facilitating transactions.
Learning Objectives
- Examine how the diversity of goods affects the viability of both barter and monetary transactions.