Suppose an ocean liner sinks and its passengers are stranded on a lush tropical island. Which of the following could most likely be used as money in the economy that develops among the survivors?
A) the life jackets they put on when leaving the ship
B) the beads from the necklaces that were given out as party favors on the night the ship sank
C) the leaves of the various tropical trees on the island
D) the fish in the sea around the island
E) the sand on the island's beaches

Question

Quizplus · Accepted Answer

The beads from the necklaces could be used as a medium of exchange in the economy that develops among the survivors. They have a relatively uniform value and can be easily transported and exchanged for goods and services. The life jackets, leaves, fish, and sand do not have these characteristics and would be less suitable as a form of currency.

Suppose an Ocean Liner Sinks and Its Passengers Are Stranded