What are the five characteristics that make an asset suitable to be used as a medium of exchange?
What will be an ideal response?
It must be acceptable to most people; standardized in terms of quality; durable so that it doesn't become too worn out to be usable; valuable relative to its weight; divisible since prices of goods and services vary.
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The above table gives the total utility that Homer obtains from consuming various quantities of chocolate chip cookies. The marginal utility from the third pound of cookies is
A) 3. B) 4. C) 9. D) 12.
The optimal point on a production possibilities curve is achieved where:
A. the smallest physical amounts of inputs are used to produce each good. B. each good is produced at a level where marginal benefits equal marginal costs. C. large amounts of capital goods are produced relative to consumer goods. D. large amounts of consumer goods are produced relative to capital goods.