63 #
© 2014 Pearson Canada Inc.#
Which of the following statements uses the economists' definition of money?
A) I plan to earn a lot of money over the summer.
B) Betsy is rich—she has a lot of money.
C) I hope that I have enough money to buy my lunch today.
D) The job with New Company gave me the opportunity to earn more money.
Answer: C
Diff: 2 Type: MC Page Ref: 47
Skill: Applied
Objective List: 3.1 Describe the meaning of the word money
In the country of Moneyland the law allows you to repay mortgage in rocks. Thus,
____.
A) Moneyland is a poor country
B) rocks in this country are considered as money
C) money is scarce
D) Moneyland is a developing country
Answer: B
Diff: 2 Type: MC Page Ref: 44
Skill: Applied
Objective List: 3.1 Describe the meaning of the word money
Explain the concepts of wealth and income and how they relate to the concept of money.
Answer: Non-economists often use money synonomously with wealth or income. Wealth is a
stock variable that describes the total collection of property that is used to store value. Income is
a flow of earnings over some period of time. Money is a stock variable; it is a certain amount at
a point of time and can be used in the payment of goods and services.
Diff: 2 Type: SA Page Ref: 47
Skill: Applied
Objective List: 3.1 Describe the meaning of the word money