Author Question: The primary functions of money are: a. velocity, liquidity, and transactions. b. speculative ... (Read 17 times)

HudsonKB16 · **on:** Jun 30, 2018

The primary functions of money are:
a. velocity, liquidity, and transactions.
b. speculative demand, measure of value, and precautionary demand.
c. a medium of exchange, a unit of account, and a store of value.
d. a store of value, heterogeneity, and a medium of exchange.
e. currency value, fiat value, and accepted value.

Question 2

What are the benefits and costs to a nation that participates in international trade? Do the benefits outweigh the costs or do the costs outweigh the benefits?

mistyjohnson · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

c

Answer to Question 2

The benefits to a nation of specializing and trading with other nations along the lines of comparative advantage are the higher average absolute standards of living its people are able to enjoy. Prices are generally lower and there are a wider variety of more and higher quality products to consume. The costs to a nation include the loss of some businesses and some jobs. The evidence is clear that the benefits far outweigh the costs for a nation. This is why so many nations want to increase their participation in the global economy.