University of Maryland, Baltimore  ECON201 Sample Questions Chapter 14   1)In macroeconomics, ___________________________ describes a situation in which two       people each want to exchange some good or service that the other can provide

University of Maryland, Baltimore 

ECON201
Sample Questions Chapter 14 

people each want to exchange some good or service that the other can provide.

A. a medium of exchange

B. a double coincidence of wants

C. interrelated banking

D. the usefulness of money

2.

 If Bill performs plumbing upgrades for Alice in exchange for her incorporating his

business, then their _________________________ will be satisfied.

A. balance of trade

B. double coincidence of wants

C. convenience of exchange

D. division of labor

3.

 In macroeconomics, a _______________ describes the common way in which market

values are measured in an economy.

A. unit of account

B. medium of exchange

C. store of value

D. unit of exchange

4.

 ________________ serves society in three functions: medium of exchange, unit of

account, and store of value.

A. Money

B. Currency

C. Barter

D. A double coincidence of wants

5.

 Lance paid $175,000 for his house in 2003 and sold it for $325,000 in 2006. What

function did the house serve during the time Lance owned it?

A. medium of exchange

B. unit of account

C. store of value

D. unit of exchange

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