Suppose Prices Are Quoted in Dollars and Transactions Are Conducted

question 299

Multiple Choice

Suppose prices are quoted in dollars and transactions are conducted in pesos. The dollar serves as a

• A) medium of exchange.
• B) store of value.
• C) unit of account.
• D) all of the above.

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Definitions:

Tax Revenue

Funds accumulated by governments as a result of taxation.

Inelastic

Describing demand that does not change significantly when the price of a good or service changes.

Excess Burden

The cost to society created by market inefficiency, particularly through the misallocation of resources or distortions in the market.

Excess Burden

The cost to society created by market inefficiency, often associated with the distortionary effects of taxes and subsidies.