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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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