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Questions and Answers
Which of the following best describes the function of money as a unit of account?
Which of the following best describes the function of money as a unit of account?
- Money serves as a common measure of the value of goods and services being exchanged. (correct)
- Money provides a common currency for international trade.
- Money helps us quantify the opportunity cost of consuming goods and services.
- Money facilitates efficient decision-making in terms of buying goods and services.
What is the opportunity cost of buying a pair of shoes if oranges cost $6/dozen and a pair of shoes costs $12?
What is the opportunity cost of buying a pair of shoes if oranges cost $6/dozen and a pair of shoes costs $12?
- 3 dozen oranges
- 1 dozen oranges
- 2 dozen oranges (correct)
- 4 dozen oranges
How does knowing the value of a good in terms of money facilitate efficient decision-making?
How does knowing the value of a good in terms of money facilitate efficient decision-making?
- It provides a common currency for international trade.
- It allows for easy comparison and evaluation of different goods and services. (correct)
- It ensures fair exchange of goods and services.
- It helps us quantify the opportunity cost of consuming goods and services.
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