Which function of money allows people to specialize in areas in which they have a comparative advantage?
A) medium of exchange
B) unit of accounting
C) store of value
D) standard of deferred payment

Question

Quizplus · Accepted Answer

The function of money as a medium of exchange allows people to specialize in areas in which they have a comparative advantage because it facilitates the exchange of goods and services. With money acting as a medium of exchange, individuals can use the money they earn from their specialized work to purchase the goods and services they need from others who specialize in different areas. This leads to greater overall efficiency and productivity in the economy.

Which Function of Money Allows People to Specialize in Areas