Question

Which of the following statements is true concerning the introduction of general purpose money into societies that have non-market economies?

a) It makes it easier to carry out trade and gives individuals the ability to accumulate wealth.
b) It results in the economic independence for the society as a whole.
c) It rarely has a powerful effect on the non-market economy.

Answer 1

Statement (a) is true as the introduction of general purpose money in non-market economies allows for easier trade and the accumulation of wealth.

Step-by-step explanation:

Among the given options, statement (a) - It makes it easier to carry out trade and gives individuals the ability to accumulate wealth - is true concerning the introduction of general purpose money into societies that have non-market economies. The introduction of money as a medium of exchange dramatically transforms economies by facilitating trade, as money serves as a measure of value and a store of value. It eliminates the limitations of barter systems, such as the need for a double coincidence of wants. Instead, money allows for easier exchange of goods and services and provides a means for individuals to accumulate wealth over time. It represents a significant milestone in economic development from simple bartering in hunter-gatherer societies to a more complex and efficient economic system in later societies.