

1.

if a transaction takes place at economic value, there is no net transfer of value from one party to the other. 

this is not the case if the transaction price is greatly different from the economic value.


2.

for economic issues, money can be treated as another physical asset (referenced to the backing, or the notes/points themselves)


3.

increases in value occur when work is done, not when transactions are done (e.g selling an item for cash)

e.g.


	box of chocolate bars, 100 items, cost $80.		total cost $80

	individual bars, 100 items, $2				total value $200


in this example the value is created by opening the bulk box and splitting the contents into individual bars 




4.

use of currency results in far greater freedom for business transactions than a barter system (exchanging physical items),



5.

by effectively splitting the transaction into two independant parts (e.g. buy oranges, sell apples),

if there are 100 sellers and only 3 that have a need for items that you posess, in a barter system

there would be 3 possible trades, in a currency system 100.

currency systems are highly vulnerable to theft though.



6.

trading only occurs between parties when the parties have different needs.

if two parties had a desperate need for oranges, there would be no trading between them.


if one party had a desperate need for apples and the other party had a desperate need for grapefruit, 

some trading might occur.



7.

tax can lead to a much greater level of economic wealth. AFter taking away a percentage of cash or other products from a person, 

there is a need to produce more to replace that, so new items are produced. without this production would slow or stop. 

tax funds can be spent on developing public infrastructure, benefits or returned to the person in some way.


