In a Market System, as One Industry Expands While Another

question 207

Multiple Choice

In a market system, as one industry expands while another contracts, resources will flow

• A) away from the expanding industry toward the contracting one.
• B) across industries, driven by the changes in resource prices paid by firms.
• C) toward the industry where the product demand is declining.
• D) because resource allocation will have to equalize between the two industries.

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Definitions:

Exports

Goods or services sent from one country to another for sale.

Imports

Goods or services brought into one country from another for sale or use.

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A period usually set by retailers to clear out seasonal merchandise at reduced prices.