WHICH OF THE FOLLOWING STATEMENTS BEST EXPLAINS HOW THE USE OF MON...

35) Which of the following statements best explains how the use of money in an economy increases

economic efficiency?

(a) Money increases economic efficiency because it is costless to produce.

(b) Money increases economic efficiency because it encourages specialization.

(c) Money increases economic efficiency because it increases transactions costs.

(d) Money cannot have an effect on economic efficiency.

Answer: B

Question Status: Previous Edition