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 makes trade and exchange of goods and services easier, which allows for greater efficiency and specialization in production since producers can now sell their goods and services for money and use that money to purchase the specific goods and services they need. The use of money reduces the need for barter and the coincidence of wants (Choice A and D) and does not have a significant impact on consumer sovereignty (Choice C).

The Use of Money for Exchange and Trade