The existence of money leads to
A)greater specialization in production, but not to a higher standard of living.
B)a higher standard of living, but not to greater specialization.
C)greater specialization and to a higher standard of living.
D)neither greater specialization nor to a higher standard of living.

Question

Quizplus · Accepted Answer

The existence of money facilitates trade and allows individuals to specialize in the production of goods or services in which they have a comparative advantage. This specialization leads to more efficient production, which in turn can lead to a higher standard of living as resources are used more effectively and a greater quantity and variety of goods and services can be produced and consumed.

The Existence of Money Leads to