Real World Graduation, Question 82: Pennies

RealWorldGraduation_Question_82_Pennies   <– PDF

There has been some discussion in recent years about the utility of small-denomination U. S. coins such as the penny and the nickel.  Some people have concluded that we would be better off to abolish these coins.  What is the most plausible reason for abolishing the penny?

a) The buying power of the penny is so low as to not be worth continuing; for example, there is no such thing as “penny candy” any more.

b) The penny is too heavy to justify carrying around, when considered with regard to its buying power.

c) The effect of monetary inflation has made penny nearly worthless. People don’t even collect change if it is only a few cents; people won’t stop to pick up a penny on the street.

d) It has always been an inconvenience, since it is nearly the same size as a dime.

e) Some combination of a), b), and c).

(The answer is on p. 2 of the PDF.)


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