Asked by DYLAN HOLLOWAY on Apr 26, 2024
Verified
As an economy modernizes and its standard of living rises,the proportion of transactions conducted with barter
A) rises.
B) falls.
C) remains about the same.
Standard of Living
measures the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a geographic area.
Barter
An exchange system where goods and services are traded directly without the use of money as a medium.
- Absorb the essentials of the circular flow concept and the role of public goods in an economy.
Verified Answer
AM
Amanda MurrianMay 03, 2024
Final Answer :
B
Explanation :
As an economy modernizes and people become wealthier, they have access to more money and financial instruments, such as credit cards, checks, and bank accounts. This makes it easier and more convenient to conduct transactions using currency, rather than barter. Therefore, the proportion of transactions conducted with barter tends to fall as economic modernization and urbanization occur.
Learning Objectives
- Absorb the essentials of the circular flow concept and the role of public goods in an economy.