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In a Market System, as One Industry Expands While Another

Question 125

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.Difficulty: 02 Medium

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