204k views
0 votes
A $100 pair of shoes is worth two $50 haircuts or four $25 tickets to a baseball game. This example represent money as?

User DKebler
by
7.6k points

1 Answer

0 votes

In the example above, money can be represented as a medium of exchange.

Money as Medium of Exchange.

Money as a medium of exchange refers to its function as a widely accepted instrument or token that facilitates the buying and selling of goods and services. It serves as a common medium through which individuals can exchange their goods or services for other goods or services.

Money serves as a common unit of value that allows individuals to trade goods and services. In this example, the $100 pair of shoes, two $50 haircuts, and four $25 baseball game tickets all have different values, but they can be compared and exchanged because they are all denominated in the same currency. Money facilitates transactions by providing a universally accepted means of payment, making it easier for people to buy and sell goods and services.

User Ruiz
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.