Which of the following statements is true?
A) Hours of labor that go into producing a product is a better unit of account than paper money.
B) When money is used as a yardstick to describe the price of various goods and services, it is serving as a store of value.
C) The necessary condition required for money to function as a medium of exchange is that it also needs to be a store of value.
D) One of the limitations of using money is that it does not allow for the transfer of purchasing power into the future.
C
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Suppose the price elasticity of demand for good A is 1.25 . If the price of good A increases by 20%, what will be the resulting percentage change in quantity demanded for good A?
Moral hazard:
A. is about the unobserved actions of people. B. is about the unobserved characteristics of people. C. occurs before the parties have entered into an agreement. D. None of these statements is true.