Avery Needs to Purchase a New Computer for School

question 22

Multiple Choice

Avery needs to purchase a new computer for school. He looks at two laptops that have 18-inch screens, 16 GB of memory, and DVD/CD drives. One costs $850 and the other costs $700. Avery can use the prices of the laptops to determine which is a better deal. Which function of money does this illustrate?

• A) unit of account
• B) measure of value
• C) medium of exchange
• D) store of value

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Definitions:

Indifference Analysis

An economic tool used to analyze and understand consumer preferences, showing combinations of goods between which a consumer is indifferent.

Numerically Measurable

Quantifiable or able to be expressed in numerical terms and measured.

Convex

A shape where a line drawn between any two points on the structure will lie outside it, often used in economics to describe preference curves.