Question:
Justify the following statements with valid arguments:
Money serves as the ‘medium of exchange’ for transactional purposes in an economy.
Justify the following statements with valid arguments:
Money serves as the ‘medium of exchange’ for transactional purposes in an economy.
Show Hint
Highlight the role of money in overcoming barter system limitations in such questions.
Updated On: Jan 13, 2026
Hide Solution
Verified By Collegedunia
Solution and Explanation
Money acts as a universally accepted medium for exchanging goods and services.
- It eliminates the need for the double coincidence of wants, which is a major limitation of the barter system.
- This enhances trade efficiency and simplifies transactions.
Was this answer helpful?
0
0
Top Questions on Cost Function and Marginal Cost
- Let the total cost (TC) = \( C = f(X) \) for a firm in the short run, which of the following expressions represents the correct relationship between marginal cost (MC) and average cost (AC)?
- CUET (PG) - 2025
- Economics
- Cost Function and Marginal Cost
If the marginal cost of a firm is given as the function of output, \( C'(Q) = 2e^{0.2Q} \), and if the fixed cost is 75, find the total cost function.
- CUET (PG) - 2025
- Economics
- Cost Function and Marginal Cost
- Given a cubic cost function C(Q) = Q³ + Q² + Q + 1, arrange total cost (TC), Marginal Cost (MC), Average Cost (AC), Average Fixed Cost (AFC) in increasing order when Q = 2.
(a) AFC
(b) TC
(c) MC
(d) AC- CUET (PG) - 2024
- Economics
- Cost Function and Marginal Cost
- For a manufacturing firm, the cost function is given by \(C = q^{3} + 2q^{2} + q + 1.\) The marginal and average costs at \(q = 10\) units are respectively given by:
- CUET (PG) - 2024
- Economics
- Cost Function and Marginal Cost
The present-day rapid industrial growth in China can be traced back to the economic reforms introduced in 1978, where ________ .
(i) Initially reforms were initiated in agriculture, foreign trade, and investment sectors
(ii) The policy of dual pricing was adopted
(iii) The Government revoked the policy of Special Economic Zones- CBSE CLASS XII - 2024
- Economics
- Cost Function and Marginal Cost
View More Questions
Questions Asked in CBSE CLASS XII exam
- A rectangular glass slab ABCD (refractive index 1.5) is surrounded by a transparent liquid (refractive index 1.25) as shown in the figure. A ray of light is incident on face AB at an angle \(i\) such that it is refracted out grazing the face AD. Find the value of angle \(i\).
- CBSE CLASS XII - 2025
- Refraction
- Considering the case of magnetic field produced by air-filled current carrying solenoid, show that the magnetic energy density of a magnetic field \( B \) is \( \frac{B^2}{2\mu_0} \).
- CBSE CLASS XII - 2025
- Magnetic Field
- The slope of the curve \( y = -x^3 + 3x^2 + 8x - 20 \) is maximum at:
- CBSE CLASS XII - 2025
- Maxima and Minima
- Three batteries E1, E2, and E3 of emfs and internal resistances (4 V, 2 \(\Omega\)), (2 V, 4 \(\Omega\)) and (6 V, 2 \(\Omega\)) respectively are connected as shown in the figure. Find the values of the currents passing through batteries E1, E2, and E3.
- CBSE CLASS XII - 2025
- Kirchhoff's Laws
- Two wires made of the same material have the same length \( l \) but different cross-sectional areas \( A_1 \) and \( A_2 \). They are connected together with a cell of voltage \( V \). Find the ratio of the drift velocities of free electrons in the two wires when they are joined in: (i) series, and (ii) parallel.
- CBSE CLASS XII - 2025
- Current electricity
View More Questions