The use of money for exchange and trade:
A) Increases the importance of barter
B) Fosters more specialization in production
C) Reduces consumer sovereignty
D) Raises the need for a coincidence of wants

Question

Quizplus · Accepted Answer

The use of money allows for easier exchange and trade, as it is a universally accepted medium of exchange. This, in turn, fosters more specialization in production as individuals and businesses can focus on producing what they are best at and use money to acquire other goods and services they need. The other choices are incorrect as barter becomes less important with the use of money, consumer sovereignty is not directly impacted by the use of money, and the need for a coincidence of wants is reduced with the use of money as it allows for more flexible and diverse transactions.

The Use of Money for Exchange and Trade