Economics Assignment (Other (Not Listed) Sample)

Economics Assignment
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Q1.
Money is a commodity that is generally accepted as a medium of economic exchange. For example, when someone buys goods, money allows the buyer to pay for the goods while at the same time allowing the seller to receive payment. Money is also a store of value and a unit of accounting used to measure the value of goods. Currency is acceptable as money because it facilitates transactions of value, for example when one pays for groceries using currency. Currency also meets the criteria of ‘store of value’ when people put currency in a savings account. Lastly, currency meets the condition of ‘unit of account’ because properties can be valued based on dollars or any other currency (Asmundson & Oner, 2012).
Q2.
Bartering refers to a system whereby people trade goods for other goods that they need. Bartering meets only one out of the three functions of money. In this respect, bartering can only be used as a medium of economic exchange but it is difficult to use it as a store of value or unit of accounting. The value of a good in bartering is largely dependent on double coincidence of wants.
Q3.
Before the advent of currency agricultural commodities which were constantly on high demand such as grain and tools were used as money. The high demand for such commodities meant that it was easy to exchange or store and use them later. Precious stones and cowrie shell also served as traditional forms of money (Potters, 2003).
Q4.
The most valuable lesson that I have learnt about money from the Bible is to be contented with what I earn from my honest labor. This is because when one chases after money he/she will never get enough of it. When a certain level of income is attained, a person will always desire for more, creating a vicious cycle of de