The difference between the average earnings of eye surgeons and those of janitors is an example of
a. a temporary differential
b. a permanent differential
c. a resource price difference that will cause a reallocation of resources to different uses
d. a temporary difference that will be eliminated through the reallocation of resources to different uses
e. a differential caused by a lack of resource mobility
Question 2
It is in the long-run economic interest of the world to preserve rainforests, but it is not in the short-run economic interest of the inhabitants of the countries involved to do so.
a. True
b. False
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