The Use of Money as a Unit of Account

question 63

Multiple Choice

The use of money as a unit of account:

• A)discourages specialization and division of labor.
• B)inhibits the exchange of goods and services.
• C)makes it difficult to compare the relative values of goods and services.
• D)lowers information costs relative to barter.
• E)relies on the existence of a double coincidence of wants.

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Definitions:

International Trade

International trade involves the exchange of goods and services across international borders, allowing countries to expand their markets and pursue competitive advantages.

Tariffs

Taxes imposed by a government on imported goods and services to restrict imports or generate revenue.

Import Quotas

Restrictions set by a country on the quantity of goods that can be imported within a certain time frame to protect domestic industries.

Domestic Employment

The total number of people employed within a country's borders, reflecting the health of the economy and labor market.