Which of the following applies to the use of money as a unit of account?
I. A unit of account is an agreed measure for stating the prices of goods and services.
II. Using money as a unit of account creates a simplified pricing system.
III. Economies choose many goods as units of account.
A) I only
B) II only
C) I and III
D) I and II

Question

Quizplus · Accepted Answer

I. A unit of account allows for the uniform expression of prices, making it easier to compare the value of goods and services. II. By using money as a common measure, it simplifies the pricing system, reducing complexity in economic transactions. III is incorrect because typically, an economy chooses a single good (money) as the unit of account to ensure consistency and simplicity in economic dealings.

Which of the Following Applies to the Use of Money