How does money function as a unit of account?
a. Money has intrinsic worth as a commodity
b. Money is convertible into commodities that have intrinsic worth.
c. The prices of all goods and services are measured in terms of money.
d. Things that function as money can do so because people know there is a standard of value that ultimately backs the money even if it is only faith.
e. Bank accounts make it easy for people to store their wealth.
c
You might also like to view...
The main area of economic activity that Canada chose not to open to free trade is
A) agriculture. B) oil and gas. C) lumber. D) the cultural industries. E) financial services.
Which of the following statements is true?
a. The demand for tobacco products tends to be elastic. b. Total revenue is maximized when price elasticity of demand is one. c. Goods are said to be price inelastic when the elasticity is greater than two. d. The demand for milk is more elastic than the demand for luxury travel cruises. e. The demand for 5-cent candy is more elastic than the demand for Irish lace tablecloths.
If the interest rate is 1 percent and a business pays $100,000 for a lease on a factory, the explicit costs are
A) $110,000. B) $100,000. C) $10,000. D) $90,000.
The feedback effect can be thought of as a type of
A) social regulation. B) economic regulation. C) creative response. D) regulatory lag.