Table of Contents
What one gives up other than money when consuming or producing a good?
Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. When economists use the word “cost,” we usually mean opportunity cost. The word “cost” is commonly used in daily speech or in the news.
What are the other forms of money?
Money comes in three forms: commodity money, fiat money, and fiduciary money. Most modern monetary systems are based on fiat money. Commodity money derives its value from the commodity of which it is made, while fiat money has value only by the order of the government.
What is rationing and hoarding?
Definition. Under capitalist theory, if this is done so that the resource can be transferred to the customer or improved upon, then it is a standard business practice (e.g. buying up a bunch of wood to turn into a house); however, if the sole intent is to hold an otherwise unavailable resource it is considered hoarding …
What are two goods and services examples?
Goods and services are the output of an economic system. Goods are tangible items sold to customers, while services are tasks performed for the benefit of the recipients. Examples of goods are automobiles, appliances, and clothing. Examples of services are legal advice, house cleaning, and consulting services.
What distinguishes money from other assets in the economy?
What distinguishes money from other assets in the economy? Money is different from other assets in the economy because it is the most liquid asset available. Other assets vary widely in their liquidity. Fiat money is money without intrinsic value; it has no value other than its use as a medium of exchange.
What is hoarding and Dishoarding?
Dishoarding or dishoarded money is an important source of the supply of loanable funds. In the words of Professor Kenneth K Kurihara (1910-1972), “Hoarding may be defined as the people’s desire to hoard wealth in the form of money.” When rate of interest is high, people lend the hoarded money and thus their savings.
What do you mean by Dishoarding?
: to put money or goods previously withheld into circulation.
What are the 4 main characteristics of an item that is considered money?
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and acceptability.
How does the distribution of goods and services work?
DISTRIBUTION OF GOODS AND SERVICES. The simple answer is that distributors lower the costs of market transactions in a specialized economy. First, distributors lower the costs of market transactions by taking advantage of economies of scale and scope. For example, retail stores typically offer many varieties of goods.
How does a distributor lower the cost of market transactions?
The simple answer is that distributors lower the costs of market transactions in a specialized economy. First, distributors lower the costs of market transactions by taking advantage of economies of scale and scope. For example, retail stores typically offer many varieties of goods.
Who is the distributor of goods in the market?
For those goods produced for the market, the general merchant was the key distributor. The merchant bought goods of all types and was the ship owner, exporter, importer, banker, insurer, wholesaler, and retailer.
What do you need to know about a distribution strategy?
A traditional distribution strategy looks at the classic 4 Ps (product, promotion, price, and placement). Those are the key ingredients to grow the revenues of a business, quickly and sustainably.