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Question
The government has been trying to mint dollar coins instead of printing paper dollar bills, but people have been reluctant to use coins instead of paper bills. How would an economist explain this reluctance?
a. More people are using credit and debit cards, so people are not accustomed to using change.
b. Retailers find it too expensive to deal with coins and would have to raise their prices if consumers used coins more.
c. The opportunity cost of carrying around large quantities of coins is too large.
d. Prices have increased over time, and the opportunity cost of carrying around a large number of coins would be low.
e. People who receive a dollar coin are more likely to collect than spend the money, and the economy wont grow as quickly because less is being spent.
Answer
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