John is employed as a barista in a local coffee house. He receives a salary of 10,000 AED monthly. For each of the following situations described identify which functions of money is emphasized and explain clearly the importance of the function to the economy. (a). John used 3000 AED to pay his rent (b). John put aside (in a savings account) 4000 AED. He is hoping to save the required deposit on a one-bedroom apartment he hopes to buy (c). John is in a store keenly comparing the prices on different brands of TVs he hopes to purchase.
John is employed as a barista in a local coffee house. He receives a salary of 10,000 AED monthly. For each of the following situations described identify which functions of money is emphasized and explain clearly the importance of the function to the economy. (a). John used 3000 AED to pay his rent (b). John put aside (in a savings account) 4000 AED. He is hoping to save the required deposit on a one-bedroom apartment he hopes to buy (c). John is in a store keenly comparing the prices on different brands of TVs he hopes to purchase.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
John is employed as a barista in a local coffee house. He receives a salary of 10,000 AED monthly. For each of the following situations described identify which functions of money is emphasized and explain clearly the importance of the function to the economy.
(a). John used 3000 AED to pay his rent
(b). John put aside (in a savings account) 4000 AED. He is hoping to save the required deposit on a one-bedroom apartment he hopes to buy
(c). John is in a store keenly comparing the prices on different brands of TVs he hopes to purchase.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 5 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education