Which of the Following Can Lead to Permanent Differentials in Resource

question 56

Multiple Choice

Which of the following can lead to permanent differentials in resource prices?

• A)an increase in demand for a product produced by the resource
• B)differences in the inherent quality of resources
• C)differences in the time and money involved in developing necessary skills
• D)differences in the nonmonetary rewards of a job
• E)a lack of resource mobility

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Definitions:

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the public.

Factor Market

A marketplace for the services of a factor of production (e.g., labor, capital), where firms buy resources they need to produce goods and services.

Circular Flow

An economic model depicting how money moves through an economy between producers and consumers, illustrating the continuous flow of goods and services and financial transactions.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities.