Question

Paul needs to decide between buying a big screen TV for​ $1,800 or being able to go on a New York vacation for​ $1,000 and still having enough left over to buy a small screen TV for​ $800. Paul opts for the small screen TV and the New York vacation. Paul has used money in what ways in making his​ decision? A. Medium of exchange and a method to decrease deferred payments. B. Medium of exchange and a store of value. C. Store of value and a standard unit of account. D. Medium of exchange and a standard unit of account.

Answer 1

Answer:

D.

Explanation:

As a medium of exchange.

Is something that buyers will exchange with a seller when they want to purchase goods or services for the seller.

Is anything that is used to determine value during the exchange of goods and services. Money allows us to use a systems of trade beyond the barter system (directly trading one good or service to another).

As a standard unit of account.

Money serves as measuring rod or yardstick to assess the relative value of various goods and services. Without money, each item brought to market would bear a certain value relative to each of the other items.

With money, each good has one price. In a society with N goods, there are N prices when money works.