Answer :
To determine the role that money is playing in this scenario, let's think through each of the given options:
1. Medium of exchange: Money as a medium of exchange means it's used to facilitate transactions. When you use money to purchase goods or services, you are using it as a means of transaction. For example, when you hand over cash or use a credit card to buy the shoes, you are utilizing money as a medium of exchange.
2. Store of value: Money as a store of value implies that it can preserve its value over time. If you save money now and plan to use it in the future, you are relying on its ability to store value. This role is more about the longevity of money’s value rather than its immediate use in a transaction.
3. Unit of account: Money as a unit of account means it provides a standard measure of value across the economy. When you see that the shoes cost $50, money is being used as a standard measure to determine value and compare it with the value of other goods and services.
Given that the question states the price of the shoes is $50, money in this context is being referenced as a standard measure of value. Therefore, the role that money is playing here is:
Unit of account.
So, the correct answer is:
3. Unit of account.
1. Medium of exchange: Money as a medium of exchange means it's used to facilitate transactions. When you use money to purchase goods or services, you are using it as a means of transaction. For example, when you hand over cash or use a credit card to buy the shoes, you are utilizing money as a medium of exchange.
2. Store of value: Money as a store of value implies that it can preserve its value over time. If you save money now and plan to use it in the future, you are relying on its ability to store value. This role is more about the longevity of money’s value rather than its immediate use in a transaction.
3. Unit of account: Money as a unit of account means it provides a standard measure of value across the economy. When you see that the shoes cost $50, money is being used as a standard measure to determine value and compare it with the value of other goods and services.
Given that the question states the price of the shoes is $50, money in this context is being referenced as a standard measure of value. Therefore, the role that money is playing here is:
Unit of account.
So, the correct answer is:
3. Unit of account.
