The Difference Between Temporary Factor- Price Differentials and Equilibrium Factor-

question 48

Multiple Choice

The difference between temporary factor- price differentials and equilibrium factor- price differentials is that

• A)temporary differentials are affected by supply and demand whereas equilibrium differentials are not.
• B)the government can only eliminate equilibrium differentials.
• C)equilibrium differentials lead to,and are eliminated by,factor mobility whereas temporary differentials do not.
• D)only equilibrium differentials are interesting for policy purposes.
• E)temporary differentials lead to,and are eliminated by,factor mobility whereas equilibrium differentials do not.

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Definitions:

Scaffolding

A teaching method that involves providing support to students as they learn new concepts, gradually removing the support as the learner becomes more competent.

Feedback

Information given to individuals about their performance or behavior that can be used for self-improvement or adjustment.

Riding

An electoral district or division, particularly in countries like Canada, used in the context of parliamentary elections.

Habituation

A decrease in response to a stimulus after repeated exposure, demonstrating a basic form of learning or adaptation.