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Determine if item meets the economic definition of money: Medium of exchange, unit of account and store of wealth:

1) A U.S. $5 bill
2) Baseball cards
3) Cigarettes in prison
4) Gold
5) A famous piece of artwork

1 Answer

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Final answer:

A U.S. $5 bill meets the economic definition of money as a medium of exchange, unit of account, and store of wealth. Baseball cards, cigarettes in prison, and a famous piece of artwork do not meet the economic definition of money. Gold can meet the economic definition of money to some extent.

Step-by-step explanation:

A U.S. $5 bill meets the economic definition of money. It is widely accepted as a medium of exchange, used for transactions. It is also a unit of account as it has a specific value attributed to it. Furthermore, it can act as a store of wealth as it can be saved and used for future purchases.

Baseball cards, cigarettes in prison, and a famous piece of artwork do not meet the economic definition of money.

They are not widely accepted as a medium of exchange and do not have a specific value attributed to them that can be widely agreed upon.

While they may hold value to certain individuals, they are not universally recognized as a means of exchange.

Gold can meet the economic definition of money to some extent. Gold has historically been used as a medium of exchange and a store of value.

However, it is not as widely accepted as currency and its value can fluctuate significantly based on market conditions.

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