How does a dollar represent economics?

Question

How does a dollar represent economics?

Answer 1

The higher the value the more economically sound you are as to having buying power.

Answer 2

Because it's value is flexible and based on social acceptance.

A dollar is only a piece of paper, it has no more value than what a people in a society put on it.  

It has more or less value in other countries depending on our relations with that country, seriously some countries use our money as toilet paper because they don't value it or us at all, other countries they'll kill each other over a 5 dollar bill because in their country American money is all powerful.

The value of the dollar within our own country can rise or fall within a day, one day it can buy you a loaf of bread and the next day it won't depending on the market and the resources used to make the bread.

Hope this made sense....

Answer 3

It fulfils the functions of money, it has a medium of exchange, is a unit of account, has a store of value. We need money because of scarcity, and that's how it's related to economics.

Answer 4

well in america that is our currency everything is traded in it. as in oil prices are set in dollars so where the euro is worth more than a dollar that means it is cheaper in other countries. if we went to mexico it wouldn't take much american money to be rich where there currency is the peso usually the exchange rate on that is some where like 11 peso to one dollar when it comes to euros it usually is hangs around .6 euros to make one dollar. it really comes down to excchange rates and the economies of other countries. being that most traders in this country are into trading in other countries stock markets so the dollar really just represents money and exchange rates.