A Temporary Factor- Price Differential Is One Which

question 106

Multiple Choice

A temporary factor- price differential is one which

• A) will reflect a permanent state of disequilibrium.
• B) derives from intrinsic differences in the factors themselves.
• C) will hamper the reallocation of resources from declining to growing industries.
• D) is seldom self- eliminating.
• E) will tend to be eliminated in the long run.

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