A good would not be very suitable to use as money if it
a. is portable because it is needed as a store of value
b. is divisible because each unit of money should have the same value
c. is scarce because we need more money as the economy grows
d. is commonly accepted as a medium of exchange because everyone will hoard it
e. lacks uniformity because the money supply would be of varying quality and people will hoard the preferred money and circulate only the less preferred
E
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Suppose that a firm spends $200,000 to build a factory in 2012 that is expected to have a life of 10 years. As a result, GDP in 2012 will increase by:
a. $20,000 b. $200,000 c. You need to know the selling price of the factory to answer this question. d. It depends upon the tax law regarding depreciation.
Marginal revenue product is measured in dollars per unit of output
a. True b. False