In a Market System, Resources Will Move Away from an Industry

question 12

Multiple Choice

In a market system, resources will move away from an industry when:

• A) Profits of firms in the industry are rising
• B) Demand for the industry's product is decreasing
• C) The production of output in the industry is rising
• D) Profits of firms in other industries are falling

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Definitions:

Water Runoff

Water, from rain or melted snow, that flows over the land's surface and may collect pollutants before entering water bodies.

Pollutants

Substances introduced into the environment that cause harm to humans, animals, and the natural ecosystem.

Clear-cutting

A logging practice that involves the complete removal of all trees from a specific area.

Even-aged Stand

A forestry term describing a group of trees of similar age within a specific area, typically resulting from reforestation or natural regeneration following a disturbance.