Author Question: If perfect competition existed everywhere, along with frictionless exchange, perfect information, ... (Read 62 times)

WhattoUnderstand · **on:** Jun 30, 2018

If perfect competition existed everywhere, along with frictionless exchange, perfect information, and constant returns to scale,
a. consumers would carry out transactions directly with resource suppliers
b. firms would not have the information necessary to calculate marginal productivities of resources
c. entrepreneurs would be needed to collect information
d. consumers would produce output and then engage in barter
e. the economy would be organized into one large firm

Question 2

A leftward shift of the European demand curve for foreign exchange will
a. decrease the price of foreign exchange in Europe
b. increase the price of foreign exchange in Europe
c. decrease the value of the euro
d. make foreign goods more expensive in terms of euros
e. make European goods less expensive in terms of foreign exchange