Final answer:
None of the goods listed in the question is a luxury item. Chips can act like money within a casino but are not considered actual money outside of that environment. Houses, land, and art are stores of value but not practical for daily transactions, and M1 is the easiest type of money to spend when shopping.
Step-by-step explanation:
In addressing the question regarding which of the goods is most likely to be classified as a luxury good, none of the options provided (chips, queens, hearts) is inherently a luxury good. However, in terms of economic concepts, let's answer the self-check questions that relate to functions of money and the types of money used for transactions.
In a casino, chips can be considered money within that specific economy as they serve as a medium of exchange, a unit of account, and a store of value for transactions within the casino. However, outside of the casino, their utility as money is limited.
Items like a house, land, or art can be considered a store of value but do not necessarily serve the other two functions of money because they cannot be easily used as a medium of exchange or a unit of account for everyday transactions.
When shopping for clothes and books, the most convenient currency to spend would be M1 which includes currency and checks since it is readily accepted for transactions. M2 includes savings accounts and money market accounts, which are not as easily spent directly, although they can be quickly converted to M1 at an automatic teller machine.