A $25,000 Price Tag on a New Car Is an Example

question 385

Multiple Choice

A $25,000 price tag on a new car is an example of money as

• A) a store of value.
• B) a unit of account.
• C) medium of exchange.
• D) a time deposit.

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Definitions:

Units

A standard measure or quantity used in statistics, mathematics, or physics.

Perfect Competition

A market structure characterized by a large number of small firms competing against each other, where no single firm has the market power to influence the price of the product it sells.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the efficiency of resource utilization beyond just financial gain.

Marginal Costs

The cost of producing a subsequent unit of a product or service.