Question

Doug compares the unit price of chocolate bars in order to get the best buy. This represents using money as

A) A medium of exchange.
B) A store of value.
C) A unit of account.
D) A unit of deferred payment.

Answer 1

Doug is using money as a unit of account by comparing chocolate bar prices to get the best value, showcasing one of the functions of money in the economy.

Step-by-step explanation:

Doug's comparison of the unit price of chocolate bars to determine the best buy is an example of using money as a unit of account. This function of money facilitates easier transactions by assigning a specific value to goods and services, which makes it simpler to compare and contrast the worth of different items without engaging in barter. By comparing unit prices, Doug is using money to assess the relative value of chocolate bars and make an informed purchasing decision.