In a Market System, as One Industry Expands While Another

question 144

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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