Test 1 Flashcards
When is there equality of exchange?
There is no equality of exchange.
What is money?
money is the most marketable commodity in a society.
What is the minimum amount of people in a society needed for money to exist?
two.
What does man need to do to produce or discover capital?
give up income.
What does the Bible say about the use of gold and silver / money?
It does not require its use, simply states that humanity decided to use it.
In what cases are monopolys dangerous?
ALL CASES DUMBASS
Who was the greatest economist of all time?
Ludwig Von Mises.
How does the free market operate?
Rationally
Why did money fail in Egypt during the famine?
Grain became more valuable than money.
What are the properties of money?
- Divisibility
- Portability
- Durability
- Recognizability
- Scarcity
What is the value of an item based on?
What we expect it to do for us in the future.
Does money increase trade?
YES.
What are two truths about money?
It increases our options of buying and selling
It makes specialization in production possible.
What would a primitive societies situation be with money?
It would barter instead.
What are two reasons gold became a currency?
It has the five characteristics of money
it has a relationship with worship and beauty.
