In perfect competition, all the following situations arise except ________
A. firms produce an identical good or service
B. each firm chooses the price at which to sell the good it produces
C. firms can sell any quantity they choose to produce at the market price
D. buyers know each seller's price
B Firms in perfect competition are price takers so they "take" the price determined in the market.
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The slope of the BP curve reflects the
A) ease with which capital flows across a nation's borders. B) inflation rate of the country. C) sensitivity of income to changes in the inflation rate. D) ease with which the central bank can keep an exchange rate fixed.
When resource markets are free to adjust, temporary differentials will cause
a. b, c, and e to occur b. the allocation of fewer resources to lower-paid uses c. the equalization of payments for the same resource in different uses d. no change in the allocation of resources e. the allocation of more resources to higher-paid uses