Which of the following results from the introduction of money for use in transactions?
A)exchange becomes easier and this promotes the specialization of labour
B)an increased use of barter
C)the specialization of labour becomes more difficult
D)self-sufficiency is assured
E)society is able to satisfy all wants

Question

Quizplus · Accepted Answer

The introduction of money for use in transactions makes exchange easier because it serves as a medium of exchange, which promotes the specialization of labor. As a result, individuals and firms can focus on producing and providing goods and services in which they have a comparative advantage, leading to greater efficiency and productivity. Increased use of barter (B), difficulty in specialization (C), and self-sufficiency (D) are not expected outcomes of the introduction of money. Society is not necessarily able to satisfy all wants (E) simply by using money; trade-offs and scarcity still exist.

Which of the Following Results from the Introduction of Money