Refer to Figure 6.1. At point A, the marginal product of labor is

Which of the following criteria would make gold a poor medium of exchange?

A) value relative to its weight so that amounts large enough to be useful in trade can be easily transported B) Its value depends on its purity, and its purity is not easy to visibly identify. C) divisibility because different goods are valued differently D) durability so that value is not lost by spoilage

A fall in the discount rate will usually encourage banks to borrow from the Fed and therefore reduce the money supply

a. True b. False Indicate whether the statement is true or false