Goods that cannot be kept for long because they spoil.

Goods that cannot be kept for long because they spoil.

• A. Durable
• B. A Medium of Exchange
• C. Storage of Wealth
• D. Divisible

Answer: (C)

Perishability affects a good’s ability to store value over time. Goods that spoil cannot be kept long enough to preserve wealth for future use, so they don’t function well as a store of wealth. That’s why this option is the best description: it directly captures the limitation of perishables in preserving value. In contrast, a durable good can be kept for a long time and thus supports storing wealth; a medium of exchange describes how money works in transactions, not how well value is preserved over time; divisible refers to whether a good can be split into smaller units, which isn’t about spoilage.

Perishability affects a good’s ability to store value over time. Goods that spoil cannot be kept long enough to preserve wealth for future use, so they don’t function well as a store of wealth. That’s why this option is the best description: it directly captures the limitation of perishables in preserving value. In contrast, a durable good can be kept for a long time and thus supports storing wealth; a medium of exchange describes how money works in transactions, not how well value is preserved over time; divisible refers to whether a good can be split into smaller units, which isn’t about spoilage.