Permanent Differentials in Resource Prices Will Cause

question 186

Multiple Choice

Permanent differentials in resource prices will cause

• A)all of the following
• 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

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Definitions:

Consideration

A legal concept referring to something of value given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Mirror-Image Rule

The principle that holds that the terms of the acceptance must mirror the terms of the offer; if the terms of the acceptance do not mirror the terms of the offer, no contract is formed, and the attempted acceptance is a counteroffer.

Mixed Sale

A contract that combines a good with a service or real estate.

Conditional Title

A legal status indicating that ownership of a property or asset will transfer from one party to another only after specific conditions have been met.