Which of the Following Best Illustrates the Unit of Account

question 16

Multiple Choice

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

• A) You list prices for candy sold on your Web site, HYPERLINK "http://www.sweettooth.com/" www.sweettooth.com, in dollars.
• B) You pay for your theater tickets with dollars.
• C) You hold currency even though you don't intend to spend it right away.
• D) None of the above is correct.

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Definitions:

Income

The amount of money received by an individual or business in exchange for labor, services, or investments, typically measured over a specific period of time.

Taxes

Compulsory financial charges imposed by a government on individuals, corporations, or other entities, primarily used to fund public expenditures.

Tax Brackets

Ranges of income taxed at different rates, designed to ensure that taxpayers with higher incomes pay a higher percentage of their income in taxes.

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Canadian government and for most provinces and territories.