Question

a. In the absence of money, trade would require money illusion. a double coincidence of wants. a store of value. a unit of account. b. In what ways does money make trade easier? Money eliminates the possibility of recessions caused by demand shortfalls. Money provides a measuring stick with which to express relative values of goods and services, simplifying comparisons. Money enables you to specialize in tasks you're good at, knowing you can earn the money needed to buy the products of other individuals, skilled in different tasks. Money eliminates the need to find trading partners who happen to possess what you want and want what you possess.

Answer 1

Answer:

a double coincidence of wants

Money provides a measuring stick with which to express relative values of goods and services, simplifying comparisons.

Money eliminates the need to find trading partners who happen to possess what you want and want what you possess.

Money enables you to specialize in tasks you're good at, knowing you can earn the money needed to buy the products of other individuals, skilled in different tasks

Explanation:

Functions of money  

1. Medium of exchange : money can be used to exchange for goods and services. For example, money serves as a medium of exchange when you pay $20 for your favourite jeans.

Without money, you would have to find someone that has jeans and wants to sell it and also wants what you have. This is known as double coincidence of wants

2. Unit of account : money can be used to value goods and services, For example, $20 is the value of your favourite jeans

3. Store of value : money can retain its value over the long term, this it can be used as a store of value