Within a market economy,some industries may be declining while other industries may be expanding.This indicates that:
A) incomes are declining.
B) productive resources are being reallocated.
C) factors of production are scarce.
D) producers are not maximizing profits.

Question

Quizplus · Accepted Answer

In a market economy, industries rise and fall due to changes in demand and supply. When industries decline, it means that their products or services are no longer in demand, whereas expanding industries are meeting the needs of consumers. To readjust to these changes in demand and supply, the market reallocates productive resources to the more lucrative industries that are expanding. Therefore, the correct choice is B) productive resources are being reallocated.

Within a Market Economy,some Industries May Be Declining While Other