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When Resource Markets Are Free to Adjust, Temporary Differentials Will

Question 37

Multiple Choice

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

Correct Answer:

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