Money is a positive thing for a society to have, since it provides citizens with a medium of exchange that they can use to pay for needed goods and services. Bartering was common before money became widely used, but it has limitations that make it much more inflexible than money.Know More
Someone wishing to barter has to first find a person who has the item or service that he or she wants, and this person must also be willing to conduct a trade. In addition to logistical issues, bartering does not allow citizens to store money for future necessities.
Money may be stored or invested until it is required, allowing people to build their wealth. It also permits individuals to purchase things of all values. With bartering, the exchange is generally for an even value.Learn more about Economics
Inflation affects the value of currency within individual countries as well as in the global economy, and high inflation rates can negatively impact the everyday quality of life for citizens. The rapid pace of India's economic development has lead to consistently high rates of inflation, which have affected food prices, interest rates and GDP growth.Full Answer >
The four basic economic questions are: what goods to produce, how to use resources in the production process, who receives the finished goods and when to produce the goods. Answering these four questions is essential for an economy to function properly.Full Answer >
Poverty compromises the market's access to skilled labor which is essential for production of needed goods and services. Poor people lack access to good health care, which presents challenges in workforce productivity. The economy also spends more on health care for people who can’t afford it. Further, poverty poses greater demands for the criminal justice system, which reduces productivity of those incarcerated and results in property damage for those affected.Full Answer >
The primary advantage of imposing quotas on imported goods is protecting new industries from foreign competitors. The main disadvantage of erecting quotas on imports is its limitation on innovation and progress.Full Answer >