Statements And Functions Of Money Flashcards
Learn about positive and normative statements and the functions of money
1
Q
What is the function of money?
A
Money functions as a medium of exchange and is accepted as a payment for goods and services.
- measure of value
- store of value
- standard deferred payment
2
Q
What is a positive statement?
A
A statement that can be proven that is a fact or a testable hypothesis which evidence to reject or support the claim can be gathered
3
Q
What is a normative statement?
A
An opinion or a view/ value of judgement which cannot be tested and proven
4
Q
What is the opportunity cost?
A
The cost of the next best alternative forgone
