3.2.2 Quiz: The Function of Money

Question 2 of 10

Which situation best illustrates the function of money as a measure of value?

A. A computer company builds a factory overseas to make its products at a low cost.
B. A consumer compares the prices of different cars before deciding which one to buy.
C. A banker gives money to an entrepreneur to help her start a new business.
D. A farmer trades one of his cows to his neighbor for three of her sheep.



Answer :

Final answer:

Money functions as a measure of value by providing a universal yardstick for comparing the value of goods and services.


Explanation:

Money serves as a measure of value by acting as a universal yardstick that expresses the value of goods and services in a single measure. For example, your labor might be valued at $15 per hour, enabling you to compare the economic value of different items.


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