All of the Following Are Examples of Equilibrium Factor-Price Differentials,EXCEPT

question 102

Multiple Choice

All of the following are examples of equilibrium factor-price differentials,EXCEPT

• A)the different prices of two pieces of land,one with a good supply of water and one without.
• B)the different wages earned by labour of varying ability.
• C)the difference in average wages in Toronto and Dryden,Ontario.
• D)an income differential that induces increased rates of entry into the higher paid professions.
• E)higher pay to a dentist than to a dental hygienist.

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Definitions:

Potential Reward

The expected gain or benefit that may be obtained from an investment or action.

Risky Asset

An asset that carries a higher level of financial risk when compared to safer investments, often with the potential for higher returns.

Semi-Strong Efficiency

A form of market efficiency that asserts all public information is already reflected in stock prices, making it impossible to achieve consistently higher returns.

Historical Information

Past data or records that provide context or insight into an event, individual, or institution's background.