Permanent resource price differentials are caused by
A)differences in resource quality
B)differences in the time and training required to perform the job
C)differences in nonmonetary aspects of the job
D)a lack of resource mobility
E)all of the above

Question

Quizplus · Accepted Answer

Permanent resource price differentials are caused by differences in resource quality, such as the education level, experience, and skillset of workers. This leads to some workers being more productive and in demand than others, resulting in higher wages and prices for their services. The other options listed may also contribute to temporary differences in resource prices, but they do not cause permanent differentials.

Permanent Resource Price Differentials Are Caused by