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In a Fully Employed Market Economy, How Are Productive Resources

Question 30

Multiple Choice

In a fully employed market economy, how are productive resources ordinarily attracted to industries that experience a large increase in demand for their outputs?


A) By raising prices of inputs with stable prices of outputs.
B) By raising prices of outputs with stable prices of inputs.
C) By raising prices of outputs and inputs.
D) By redirecting productive resources within firms, with stable prices of inputs and outputs.
E) By none of the above.

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