Which of the Following Best Illustrates the Unit of Account

question 164

Multiple Choice

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

• A) You list prices for clothing sold on your Web site, www.nattydresser.com, in dollars.
• B) You pay for your cruise tickets with dollars.
• C) You keep $50 in your backpack for emergencies.
• D) You keep your tips earned from your tour guide job in a separate jar at home.

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Definitions:

Government Caps

Maximum limits set by the government on prices, wages, or other economic variables to control the economy.

Total Cost

The total of all expenses involved in creating goods or services, encompassing both constant and changing costs.

Carbon Taxes

Economic policies designed to reduce carbon emissions by taxing companies or individuals based on their greenhouse gas emissions.

Social Cost

The total cost to society, including both the private costs incurred by firms and also any additional costs to others.