What makes something money? What functions does money perform? Why do you think packs of chewing gum don't serve as money?
What will be an ideal response?
Money is anything that is generally acceptable as a means of payment. Money has three functions: medium of exchange (money is accepted in exchange for goods and services), unit of account (prices are quoted in terms of money), and store of value (money can be held and exchanged for goods and services later). Packs of chewing gum do not function as money because they are not particularly good as a store of value—gum deteriorates. Additionally, packs of gum are not generally accepted in exchange for goods and services, so packs of gum are not a medium of exchange.
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During times of economic boom, the spending on unemployment insurance:
A. likely falls, since more people are working. B. likely goes up, since wages typically rise during booms. C. likely stays the same, as government spending is through set criteria and unaffected by the business cycle. D. is usually based on discretionary fiscal policy.
If a person without a job is not actively looking for work, that person is classified as not being in the labor force.
Answer the following statement true (T) or false (F)