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Money

1.       Why do people accept money? People accept money not to consume it directly but because it directly but because it can subsequently be used to buy things we do wish to consume. Money is the medium through which people exchange goods and service. 2.       How are goods exchanged in a barter economy? In a barter economy, the seller and the buyer each must want something the other has to offer. Each person is simultaneously a seller and a buyer. Example, in order to see a film, you must hand over in exchange a good or service that the cinema maneger wants. There has to be a double coincidence of wants. You have to find a cinema where the manager wants what you have to offer in exchange. 3.       Why is trading expensive in a barter economy? Trading is a very expensive in a barter economy because people must spend a lot of time and effort finding others with whom they can make mutually satisfa...
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