Nick is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Nick decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Nick can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Nick accumulates money in his savings account for future purchases. Nick buys his lunch with a $10 bill.
Nick is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Nick decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change. Identify what role money plays in each of the following parts of the story. Hint: Select each role only once. Role of Money Medium of Exchange Unit of Account Store of Value Nick can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. Nick accumulates money in his savings account for future purchases. Nick buys his lunch with a $10 bill.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Nick is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He heads to a local deli that sells half sub sandwiches for $4.99 and whole subs for $7.99. Nick decides that he's pretty hungry and goes for the whole. He pays with a $10 bill and tells the cashier to keep the change.
Identify what role money plays in each of the following parts of the story.
Hint: Select each role only once.
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Role of Money
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Medium of Exchange
|
Unit of Account
|
Store of Value
|
|
|---|---|---|---|---|
| Nick can easily determine that the whole sandwich, while twice as long as the half, is priced at less than twice as much. |
|
|
|
|
| Nick accumulates money in his savings account for future purchases. |
|
|
|
|
| Nick buys his lunch with a $10 bill. |
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|
|
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