Comparing How Many Dollars It Takes to Run Your Car

question 101

Multiple Choice

Comparing how many dollars it takes to run your car each year to annual earnings on a job, instead of recording costs in terms of litres of petrol and oil represents the use of money as:

• A) a means of payment.
• B) a unit of account.
• C) a store of purchasing power.
• D) a form of plastic money.

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Definitions:

Behavioral Economists

Behavioral economists study the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical economics.

Endowment Effect

The phenomenon where people ascribe more value to things merely because they own them, often leading to a discrepancy between buying and selling prices.

Raffle Prize

A reward given to the winner(s) of a raffle, which is a form of lottery or contest.

Neoclassical Economics

An economic theory that focuses on how consumers and producers make choices based on their preferences, constraints, and available resources, emphasizing the role of supply and demand in determining prices and allocation of resources.