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) II only
B) I and III
C) I only
D) I and II

Question

Quizplus · Accepted Answer

Using money as a unit of account helps in simplifying pricing systems as prices of goods and services can be easily expressed in terms of the agreed measure. However, economies do not choose many goods as units of account, but rather use a universally agreed-upon measure such as money. Therefore, statements I and II are correct, while statement III is incorrect.

Which of the Following Applies to the Use of Money