Money Serves as a Unit of Account When Goods

question 21

Multiple Choice

Money serves as a unit of account when goods

• A) have a value expressed in the same currency,thus allowing comparisons.
• B) have a value expressed in both a fiat money and a commodity money.
• C) have a value expressed in terms of both a commodity money and a commodity-backed money.
• D) cannot be assigned a value.
• E) have a value that changes over time.

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Definitions:

Productivity

The efficiency of production of goods or services expressed as the ratio of output to inputs used, a key determinant of economic performance.

Directly Proportional

A relationship between two variables where an increase in one results in a proportional increase in the other.

Inverse Ratio

A mathematical relationship between two variables where one variable increases as the other decreases, often represented as the reciprocal of a ratio.

Primary Labor Market

Primary Labor Market refers to sectors that offer high pay, benefits, and job security, contrasted with the secondary labor market.