For Which of the Following Transactions Would a Functional Relationship

question 56

Multiple Choice

For which of the following transactions would a functional relationship between the buyer and seller be LEAST appropriate?

• A)An apartment complex owner's procurement of 80 gallons of paint for the once every three year repainting of all buildings in the complex.
• B)A dentist's purchase of dentures, plates, and other mouth apparatus from a dental lab where they are made.
• C)A commuter's purchase of a daily newspaper to read on his ride to work.
• D)A job foreman's purchase of lubricating oil for an assembly line.
• E)An interior decorator's purchase of a cellular phone.

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Definitions:

Percentage Rise

A measure of how much a quantity increases over a period, expressed as a percentage of the initial value.

Equation of Exchange

An economic formula representing the relationship between the money supply, its velocity, the price level, and the number of transactions in an economy: MV = PQ.

Economy Output

The total value of all goods and services produced by an economy over a specific time period, also known as gross domestic product (GDP).

Equation of Exchange

The Equation of Exchange is an economic identity that relates the supply of money in an economy to the value of goods and services transactions, commonly represented as MV = PQ.