Economics 9708 · AS & A Level · Oligopoly

Oligopoly — practice question

The British pound serves as the national currency of the UK. In Brixton, in south London, people can obtain a specially designed currency known as the Brixton pound from dedicated cash machines. It may then be used with 150 local shopkeepers. Comparable schemes also exist in towns in the US, Italy and France. Should Brixton pounds be regarded as money?

  • Ano, because it is not possible to have two currencies in a country
  • Bno, because they are not generally acceptable outside of Brixton
  • Cyes, because some shopkeepers are willing to accept them
  • Dyes, because they fulfil all the functions of money

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