Economics Chapter: Money and Distribution

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What is one major problem associated with barter?

Double coincidence of wants (correct)

Acceptability of goods

Portability of goods

Durability of items

Barter allows for easy storage of wealth.

False

Name one characteristic of money.

Acceptability

A coin's face value can be greater than the value of the _____ used to create it.

metal Signup and view all the answers

What is NOT a characteristic of money?

Length Signup and view all the answers

Match the characteristics of money with their descriptions:

Acceptability = Everyone agrees to use it as payment Divisibility = Easily divided to represent different values Durability = Must last a long time Scarcity = The supply must be limited Signup and view all the answers

Legal tender must be accepted in payment of a debt.

True Signup and view all the answers

What are examples of 'near money'?

Cheques, bank drafts, credit cards, debit cards Signup and view all the answers

A key function of money that refers to its ability to maintain value over time is called the __________.

store of value Signup and view all the answers

Match the following characteristics of money with their definitions:

Uniformity = All units are the same Durability = Maintains its form over time Divisibility = Easily divided into smaller units Scarcity = Limited supply increases value Signup and view all the answers

What primary function does a wholesaler serve in the distribution channel?

Intermediate sales to retailers Signup and view all the answers

Large-scale retailers have contributed to the decrease in the role of wholesalers.

True Signup and view all the answers

What is one way wholesalers assist retailers?

By breaking bulk and allowing credit purchases. Signup and view all the answers

The distribution channel includes the sequence: Producer → Wholesaler → ____ → Consumer.

Retailer Signup and view all the answers

Match the following wholesaler functions with their descriptions:

Buys raw materials = Keeps stock in a warehouse Finds a market = Sells to retailers Provides delivery = Ensures goods reach retailers Informs about customer preferences = Communicates feedback between retailers and producers Signup and view all the answers

Which of the following statements best describes the role of large-scale retailers in the distribution channel?

They take over the wholesaler's job. Signup and view all the answers

Wholesalers are experiencing growth due to increased product turnover from manufacturers.

False Signup and view all the answers

Name two reasons for the decline of wholesalers.

Manufacturers want to sell directly, and certain goods sell better directly to consumers. Signup and view all the answers

Producers can operate their own shops to sell directly to _______.

consumers Signup and view all the answers

Match the following distribution channels to their descriptions:

Producer - Large-Scale Retailer - Consumer = Producers sell through retailers directly to customers Producer - Mail Order Companies - Consumer = Products sold through mail and internet Elimination of Wholesalers = Wholesalers' roles are diminishing Producer - Wholesalers - Consumer = Traditional method of distribution that is declining Signup and view all the answers

Which type of wholesaler stocks a variety of goods from several manufacturers?

General wholesalers Signup and view all the answers

Specialist wholesalers stock a variety of goods from different manufacturers.

False Signup and view all the answers

What is the role of a broker in commerce?

An agent who brings together the buyer and the seller. Signup and view all the answers

Del credere agents guarantee that the buyer will pay, receiving an additional ______ for this service.

commission Signup and view all the answers

Match the following types of middlemen with their roles:

Brokers = Bring together buyer and seller Factors = Sell goods on behalf of the seller Del credere Agents = Guarantee buyer will pay Merchants = Considered wholesalers in domestic trade Signup and view all the answers