Within a market economy, some industries may be declining while other industries may be expanding. This indicates that:
A. producers are not maximizing profits.
B. productive resources are being reallocated.
C. factors of production are scarce.
D. incomes are declining.
Answer: B
You might also like to view...
How does competition ensure that the efficient product mix is attained?
What will be an ideal response?
Agents hire principals
Indicate whether the statement is true or false
The mortgage crisis started to come to a head
A) when the Federal Reserve started to raise interest rates. B) when government deficit started to grow at increasing rates. C) when the Federal Reserve passed a law aimed at getting every American to own their own home. D) a. and b. are true
In the circular-flow diagram, firms produce
a. goods and services using factors of production. b. output using inputs. c. factors of production using goods and services. d. Both (a) and (b) are correct.