If money were not used as a medium of exchange,
A) the gains from trade would be severely limited.
B) our standard of living would probably improve.
C) the transaction costs of exchange would be lower.
D) economic efficiency would increase.

Question

Quizplus · Accepted Answer

Money serves as a medium of exchange and allows for the gains from trade to occur. Without money, individuals would need to barter for goods and services, which can be inefficient and limit the number of trades that could occur. Money facilitates trade and allows for a broader range of transactions to take place. Therefore, if money were not used as a medium of exchange, the gains from trade would be severely limited.

If Money Were Not Used as a Medium of Exchange