The Function of Money Illustrated by the Prevailing Prices of Goods

question 64

Multiple Choice

The function of money illustrated by the prevailing prices of goods and services is the

• A) medium of exchange function.
• B) unit of account function.
• C) standard of deferred payments function.
• D) store of value function.

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Definitions:

Forced-distribution Method

A performance evaluation method where employees are ranked in a distribution curve, forcing managers to identify top, average, and underperforming employees.

Consumer Surplus

The economic benefit or satisfaction received by consumers when they pay a price lower than what they are willing to pay.

Milkshakes

A sweet beverage made by blending milk, ice cream, and flavorings or sweeteners such as butterscotch, caramel sauce, or chocolate syrup.

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the total amount that they actually pay.