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If an Economy Produces 100 Pencils Valued at $0

Question 31

Multiple Choice

If an economy produces 100 pencils valued at $0.25 each and 500 sheets of ruled paper at $0.01 each, using GDP as the measure of output:


A) pencils are weighted as being 25 times more important than ruled paper.
B) pencils are weighted as being 5 times more important than ruled paper.
C) ruled paper is weighted as being 25 times more important than pencils.
D) ruled paper is weighted as being 5 times more important than pencils.

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