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Question 1
A) Sarah has an apple and Ava has a bag of chips. Sarah would rather consume the bag of chips, and Ava would prefer to consume the apple. Which of the following is an example of bartering?(1 point)

Sarah pays Ava $1 for her bag of chips.


Ava pays Sarah $1 for her apple.


Sarah trades her apple for Ava's bag of chips.


Sarah and Ava consume the goods they currently possess.


Question 2
A) Gold has historically functioned as money. This is due, in part, to the willingness of others to accept it as valid payment for goods and services. In this case, gold is functioning as a(n)(1 point)

store of value.

unit of account.


fiat money.


medium of exchange.


Question 3
A) Consider a hypothetical economy in which rice functions as money. In addition to being valued as money, rice is valued as a consumer good. In this scenario, rice is said to be(1 point)

fiat money.


representative money.


currency.


commodity money.


Question 4
A) Elementary school students often trade food items at lunch in an effort to have the best lunch possible. In one elementary school, pudding cups have become so popular that they have become a unit of account. This means that(1 point)

a pudding cup will likely have the same purchasing power tomorrow as it does today.


a pudding cup entitles its holder to a share of some valuable asset.


students are eager to accept pudding cups in exchange for any lunch item.


the price of other lunch items is expressed in quantities of pudding cups.


Question 5
A) Which of the following illustrates the difference between the U.S. dollar, a form of fiat money, and a U.S. gold certificate, a representative currency?(1 point)

A U.S. dollar does not have value in addition to its value as money.


A gold certificate does not represent a claim to some specific asset.


A gold certificate does not have value in addition to its value as money.

Sagot :

1. An example of bartering is Sarah trades her apple for Ava's bag of chips.

2. Gold has historically functioned as money because it is a medium of exchange.

3. In the hypothetical economy, rice is said to be a commodity money.

4. When Pudding cups serve as a unit of account, it means that the price of other lunch items is expressed in quantities of pudding cups.

5. The difference between the U.S. dollar, and a U.S. gold certificate is a  U.S. dollar does not have value in addition to its value as money.

Trade by barter is when people exchange goods with goods. Money is not used in a trade by barter. Trade by barter was used before the invention of money. For example, a trade by barter occurs when Sarah trades her apple for Ava's bag of chips.

Commodity money is money for which its value comes from the commodity from which it is made.

Fiat money is currency whose value is not backed up by any asset. Representative money is money whose value is backed up an asset.

Money can be described as something that is accepted as a means of payments for products.

 Functions of money

1. Medium of exchange: money serves as a medium of exchange when it is accepted as payment for goods and services. For example, 2 ounces of gold is accepted as means of payment for a dress.  

2. Unit of account: money can be used to determine the value goods and services, For example, 2 cups of puddings is equivalent to plate of fruits.  

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

To learn more about money, please check: https://brainly.com/question/14816216?referrer=searchResults

Answer:

1. Sarah trades her apple for Ava's bag of chips.

2. medium of exchange.

3. commodity money.

4. the price of other lunch items is expressed in quantities of pudding cups.

5.  U.S dollars does not represent a claim to some specific assets

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