The use of money contributes to economic efficiency because:

A) governmental direction of the production and distribution of output can be avoided by using money.
B) roundabout production could not occur without the availability of money.
C) it is necessary for the creation of capital goods.
D) it promotes specialization by overcoming the problems with barter.

Economic Efficiency

A situation where resources are allocated in the most effective way possible to meet an economy's needs and wants.

Roundabout Production

A process of investing in capital goods to enhance productivity and efficiency, typically leading to greater output in the long run.

Specialization

The process by which individuals, firms, or countries focus on producing a narrow range of products or services to gain greater efficiencies and yield higher quality or productivity.