Cigarettes served as money in some POW camps during World War II. Given this fact, we would expect to observe
A) no one ever smoking a cigarette.
B) people usually resorting to barter rather than using cigarettes as money.
C) prices of other goods expressed in terms of cigarettes.
D) only government-issued cigarettes being accepted as money.

Question

Quizplus · Accepted Answer

Cigarettes being used as money in POW camps means they were a medium of exchange, so it would be natural to see prices of other goods expressed in terms of cigarettes, just as we see prices expressed in terms of national currencies in a regular economy.

Cigarettes Served as Money in Some POW Camps During World