The Difference Between Temporary Factor-Price Differentials and Equilibrium Factor-Price Differentials
The difference between temporary factor-price differentials and equilibrium factor-price differentials is that
A) equilibrium differentials are affected by shifts in demand and supply whereas temporary differentials are not.
B) equilibrium differentials lead to,and are eliminated by,factor mobility whereas temporary differentials do not.
C) the government can only eliminate equilibrium differentials.
D) temporary differentials lead to,and are eliminated by,factor mobility whereas equilibrium differentials do not.
E) only equilibrium differentials are interesting for policy purposes.
Correct Answer:
Verified
Q84: The hypothesis of equal net advantage explains
Q85: When the wage paid to workers in
Q86: Suppose the following conditions existed in the
Q87: The theory of equal net advantage is
Q88: The term "economic rent" refers to
A)a payment
Q90: Other things equal,if a particular province has
Q91: A temporary factor-price differential is one which
A)will
Q92: All of the following are examples of
Q93: The three diagrams below each show a
Q94: According to the hypothesis of "equal net
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents