ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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We need to have plenty of money in circulation
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too much money in circulation makes it worth less
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the more you have the better off you are
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None of the above
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Detailed explanation-1: -Scarcity is important for understanding how goods and services are valued. Things that are scarce, like gold, diamonds, or certain kinds of knowledge, are more valuable for being scarce because sellers of these goods and services can set higher prices.
Detailed explanation-2: -Scarce: The more money people possess, the less valuable it becomes. In other words, money only becomes valuable when there is limited supply. The money should be unique, not something easy to find anywhere. Money has to be scarce enough to be of some value, but not so scarce that it is not available.
Detailed explanation-3: -The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability. Let’s compare two examples of possible forms of money: A cow.
Detailed explanation-4: -Basics of Scarcity Each commodity comes with a price; essentially, each resource on earth shows a degree of scarcity. For example, time and money are characteristically scarce resources.