Lesson 31 - unit 7 Flashcards

1
Q

What determines the real value of money?

A

What goods and services you can buy with money.

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2
Q

What does it mean that money is a “medium of exchange”?

A

It is a commonly agreed-upon object of value to both parties making the exchange.

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3
Q

How is money a representation of value?

A

The more money something costs or someone is payed, the more that good or service is valued.

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4
Q

How does money serve as a store of value?

A

Money stays good and is valuable for a long time, so it enables you to store and maintain the value of your labor.

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5
Q

How is money a unit of accounting?

A

It demonstrates success or failure.

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6
Q

What is commodity money?

A

Money that is a commodity and has value in itself.

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7
Q

What is fiat currency?

A

Money that is valued not based on its relation to a commodity, but by the declaration of the nation’s government.

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8
Q

Warren Brookes says that our economy is moving from industrial-based to what?

A

Information based.

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9
Q

How did Joseph Schumpeter define economic activity?

A

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.

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10
Q

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?

A

They will no longer be able to lead.

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