How Is Money Functioning in the Example of a $1,000

question 21

Multiple Choice

How is money functioning in the example of a $1,000 price tag on a used car at a car lot?

• A)As a unit of account.
• B)As a store of wealth.
• C)As a medium of exchange.
• D)A medium of exchange,a store of wealth,and a unit of account.

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Definitions:

Simplify

The process of reducing an expression to its simplest form.

Average Cost

The total cost of production divided by the number of goods produced.

Setup Cost

The initial expense required to create a new product or establish a new process, including costs for equipment, facilities, and labor.

Multiply

The mathematical operation of increasing a number by another specified number of times, essentially repeated addition.