By acting as a medium of exchange, money facilitates trade and economic growth primarily by overcoming which of the following limitations of a barter system?
The absence of a standard unit of account to compare relative prices.
The requirement for a double coincidence of wants.
The risk of high inflation eroding the real purchasing power of wealth.
The underprovision of public goods in free markets.
156 exam-style questions on AQA A Level Economics 1.4 Production, costs and revenue, covering 1.4.1 Production and productivity, 1.4.2 Specialisation, division of labour and exchange, 1.4.3 The law of diminishing returns and returns to scale (A-level only), 1.4.4 Costs of production, 1.4.5 Economies and diseconomies of scale, 1.4.6 Marginal, average and total revenue, 1.4.7 Profit, and 1.4.8 Technological change (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.