In a Market System, as One Industry Expands While Another

question 122

Multiple Choice

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

• A) Away from the expanding industry towards the contracting one
• B) From one industry due to the changes in resource prices paid by firms
• C) Towards the industry where the product demand is declining
• D) Because resource allocation will have to equalize between the two industries

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