When Resources Move from a Low-Profit Industry into a High

question 2

Multiple Choice

When resources move from a low-profit industry into a high profit industry:

• A) the value of production falls.
• B) the profits of the low-profit industry fall and the profits of the high-profit industry rise.
• C) the profits of the low-profit industry rise and the profits of the high-profit industry fall.
• D) the Invisible Hand Property 2 is violated.

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Definitions:

Rubble-covered

Describes a surface or area that is scattered with broken stones, bricks, and other fragments, often resulting from destruction or decay.

Volcanic Domes

Dome-shaped formations created by slow-moving, viscous lava that piles up near a volcano's vent rather than flowing away.

Viscous Lava Flows

Slow-moving lava flows that have a high viscosity, leading to thick, sticky forms of lava that do not travel far from the eruption site.

Cooled Lava

Solidified volcanic material formed when molten lava cools and hardens on the Earth's surface.