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Question
Explain how money acts as a measure of value.
Solution
Money acts as a unit of measurement in which the values of all commodities and services are measured and stated, which is one of its most basic purposes. A phone, for example, could cost ₹10,000 or more, a laptop could cost ₹30,000 or more, and so on. It is considered a price when we represent the value of a commodity in terms of money, and it is used to justify the value of any commodity. As a result, we might say that money serves as a measure of value.
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