Money is able to function more as a medium of exchange when
ECONOMICS
WAEC 2023
Money is able to function more as a medium of exchange when
- A. there is a fall in production
- B. more people engage in subsistence production
- C. individuals and nations are self-sufficient
- D. there is specialization of labour
Correct Answer: D. there is specialization of labour
Explanation
Money is able to function more as a medium of exchange when there is specialization of labour. Specialization of labour, on the other hand, increases the need for money. This is because specialization means that people produce different goods and services, which they then trade with each other. Money is needed to facilitate these trades..
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