Equilibrium Factor- Price Differentials

question 12

Multiple Choice

Equilibrium factor- price differentials

• A) may be caused by differences in the intrinsic qualities of factors.
• B) will be eliminated when the allocation of resources is in long- run equilibrium.
• C) are unrelated to acquired differences in factors.
• D) tend to be self- eliminating.
• E) are unrelated to differences in non- monetary benefits.

---

Definitions:

Defence Mechanism

Mental tactics used subconsciously to shield an individual from distress caused by intolerable ideas or emotions.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives to another person.

Motives

Internal drives or reasons that prompt an individual to act in a certain manner, aiming to fulfill a need or achieve a goal.

Defence Mechanism

Unconscious psychological strategies brought into play by various entities to manage thoughts and feelings that are perceived as socially unacceptable.