Which Statement Best Illustrates the Unit of Account Function of Money

question 204

Multiple Choice

Which statement best illustrates the unit of account function of money?

• A) You list prices on your new restaurant menu in dollars.
• B) You pay for your Toronto FC season tickets with dollars.
• C) You keep $1000 in your safe for emergencies.
• D) You sell your home for $750 000.

Analyze the effects of market conditions and external factors on product demand.

Determine consumer preferences and reservation prices for goods.

Understand the concept of marginal revenue and how it relates to price.

Evaluate the impact of income changes on the demand for goods.

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Definitions:

Performance Report

A document that compares actual results to planned or budgeted results, often used in business to assess performance.

Actual Production

The measure of the quantity of goods or services produced by a company during a specific period.

Flexible Budget

A flexible budget adjusts according to the actual levels of activity experienced, allowing for more accurate comparisons of budgeted to actual performance.

Static Budget

A budget that is set for a specific level of activity and does not change or adjust with the actual level of activity achieved.