Question

7 multiple choice 10 points all money which is used in a market must be identical and have the same amount of purchasing power. uniform fluid medium of exchange durable 8 true or false 10 points a proper example of “limited in supply” as a characteristic of money is if every american was a billionaire. if that was the case, very few people would need or want to work, which would massively decrease production of most goods. therefore, there would be nothing for billionaires to purchase anyway, which would make their money worthless. is this true or false? true false

Explanation:

Question 7

The question is about the characteristic of money where all money in a market must be identical and have the same purchasing power. The "Uniform" characteristic of money means that each unit of money is the same in value and purchasing power, matching the description. "Fluid" is not a standard money characteristic in this context, "Medium of Exchange" refers to money's role in facilitating trade, and "Durable" refers to money's ability to last. So the correct option is "Uniform".

The "Limited in Supply" characteristic of money means that money must not be overly abundant to maintain its value. If every American were a billionaire, the effective supply of money (in terms of its relative scarcity and purchasing power) would be drastically altered. With everyone having a large amount of money, the demand for goods would be misaligned with production, and since money's value comes from its relative scarcity and ability to purchase, an overabundance (in practical terms, when everyone has so much that production collapses and there's nothing to buy) would make it worthless. This example correctly illustrates the importance of limited supply for money's value, so the statement is true.

Answer:

A. Uniform

Question 8