A guarded barbed wire fence separates East and West Bovinia.Soccer players are paid twice as much in West Bovinia as in East Bovinia.This is an example of _____

Question

Quizplus · Accepted Answer

A permanent resource price differential refers to a situation where there is a long-term difference in the wages or prices paid for similar resources in different regions, due to factors such as differences in productivity, location, or regulations. The fact that soccer players in West Bovinia are consistently paid twice as much as those in East Bovinia suggests that this is a permanent resource price differential. The presence of a guarded barbed wire fence also implies that there are political or ideological differences between the two regions that may contribute to the differential.

A Guarded Barbed Wire Fence Separates East and West Bovinia