Asked by Jason Harris on May 29, 2024
Verified
The more specialized labor becomes,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 the individual is producing only what he or she wants to consume.
Specialized Labor
Workers with specific skills and training focused on a particular job or industry, enhancing efficiency and productivity.
Monetary Exchange
The process of trading different forms of money, currencies, or other financial instruments, typically reflecting the value of goods, services, or financial assets in financial transactions.
Double Coincidence
A situation in barter economies where two parties each possess a good or service that the other desires, enabling an exchange.
- Recognize the contribution of specialization and the distribution of tasks in economic trade.
- Acquire knowledge on the concept of reciprocal exchange necessities in barter economies.
- Analyze the impact of the variety of goods on the feasibility of barter and monetary exchanges.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
B
Explanation :
As labor becomes more specialized, individuals become more dependent on others for goods and services they do not produce themselves. This makes the likelihood of finding a double coincidence of wants (when two parties have what the other wants) less likely. Therefore, individuals are more likely to use monetary exchange as a means of acquiring the goods and services they need.
Learning Objectives
- Recognize the contribution of specialization and the distribution of tasks in economic trade.
- Acquire knowledge on the concept of reciprocal exchange necessities in barter economies.
- Analyze the impact of the variety of goods on the feasibility of barter and monetary exchanges.