The Assumption of Perfect Mobility of Resources in Perfectly Competitive

question 68

Multiple Choice

The assumption of perfect mobility of resources in perfectly competitive input markets implies that

• A)all units of the same input will sell for the same price
• B)the resources will be identical in all markets
• C)unemployment rates may differ in different parts of the country
• D)there will always be enough firms to purchase all available resources

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Definitions:

Eye Muscles

The muscles that move the eye and control the dilation of the pupil; critical for vision and eye movement.

Farsighted

The condition of being able to see distant objects more clearly than objects that are near.

Habituation

The process of becoming accustomed to a stimulus after repeated exposure, leading to a decrease in the response to that stimulus over time.

Dishabituation

The renewal of attention or response to a novel stimulus after habituation has occurred to a previous stimulus.