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Chapter 3: Q. 10 (page 111)

In ancient Greece, why was gold a more likely candidate for use as money than wine?

Short Answer

Expert verified

Gold is more store of value than wine

Step by step solution

01

Step 1. Introduction

Money aids in the facilitation of trade. Buyers and sellers agree on the value of money, making it a means of exchange. Money can lose its value during periods of hyperinflation, which occur when an economy is flooded with too much money.

02

Step 2. Explanation

Wine is both more difficult and perishable than gold. As a result, gold is a greater store of value than wine, with lower transaction costs. As a result, it is a better candidate for usage as currency.

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Most popular questions from this chapter

Suppose that the cost of a movie ticket is \(12, and a latte costs \)6. Why would the theater management say the cost of admission is $12 and not two lattes? Explain why it is more efficient to compare the value of commodities in monetary terms.

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