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Definition, Measurement, and Functions of Money

AP Macro - 4.3

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Definition, Measurement, and Functions of Money

Key Concepts to Understand

Question 1 of 4

When a clothing store puts a price tag of $25 on a shirt, it is using money primarily as a:

store of value.
medium of exchange.
unit of account.
form of barter.

Practice Questions: Test Your Understanding

Apply what you've learned with these practice questions. These questions test your understanding of the key concepts.

Question 1 of 3

When you use cash to buy groceries, money is primarily functioning as a:

Store of value
Unit of account
Medium of exchange
Standard of deferred payment
Financial asset

Key Takeaways

  • 📊
    Master the fundamentals: Understanding these core concepts is essential for success in AP Economics.
  • ✅
    Practice makes perfect: Use the interactive exercises and practice questions to reinforce your understanding.