Lesson 31 - unit 7 Flashcards
What determines the real value of money?
What goods and services you can buy with money.
What does it mean that money is a “medium of exchange”?
It is a commonly agreed-upon object of value to both parties making the exchange.
How is money a representation of value?
The more money something costs or someone is payed, the more that good or service is valued.
How does money serve as a store of value?
Money stays good and is valuable for a long time, so it enables you to store and maintain the value of your labor.
How is money a unit of accounting?
It demonstrates success or failure.
What is commodity money?
Money that is a commodity and has value in itself.
What is fiat currency?
Money that is valued not based on its relation to a commodity, but by the declaration of the nation’s government.
Warren Brookes says that our economy is moving from industrial-based to what?
Information based.
How did Joseph Schumpeter define economic activity?
The practice of technology, the use of our unfolding knowledge and intelligence to convert seemingly useless matter into increasingly useful and valuable products, to generate wealth where none existed before.
What does Brookes say will be the consequences for the nation’s of the West without the renewal of individual values and without standards and disciplines?
They will no longer be able to lead.
