ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Money can be used as a universal unit of account to measure the value of all the goods and services exchanged in an economy. In a money-based economy, prices can be indicated using only one measure of value, simplifying transactions and people’s understanding of how much a good or service is worth.

Detailed explanation-2: -Economic value is the value that a person places on a good or service, based on the benefit they get from it. Economic value is subjective and difficult or impossible to measure, though there are approaches to estimating it.

Detailed explanation-3: -A unit of account is the standard denomination of money used by investors, economists, and accountants to measure value. A unit of account provides a common reference point to convey value across different goods.

Detailed explanation-4: -Gross Domestic Product is the monetary value of all goods and services produced in a country in a specific time period. It is a measure of a country’s economic growth. With increased GDP, generally, the per capita income also increases.

Detailed explanation-5: -Monetary value: The price of a product relative to its perceived worth-how much a customer is willing to pay. Social value: The way a product enables customers to connect with others-how being associated with the product impacts them.