Question 36

The term resource mobility describes the assumption that a resource removed from one industry can be moved to another.

Resource mobility refers to the flexibility and adaptability of resources, indicating that they can be transferred or allocated between different industries as needed.

A) An economic condition in which a nation exports more than it imports

This option describes a trade balance scenario rather than resource mobility. While export and import levels can relate to economic health, they do not address the movement of resources between industries.

B) The assumption that a resource removed from one industry can be moved to another

This option accurately defines resource mobility, emphasizing the capability to reallocate resources effectively between industries. This flexibility is crucial for adapting to changes in market demands and optimizing resource use.

C) The idea that market forces should determine how much to trade with little or no government intervention

This choice refers to market dynamics and trade policy rather than resource mobility. While related to economic principles, it does not specifically explain the transferability of resources between industries.

D) The idea that governments should actively defend domestic industries from imports and vigorously promote the export of resources

This option suggests a protectionist approach to trade, which is not relevant to the concept of resource mobility. It focuses on government intervention rather than the intrinsic ability of resources to move across industries.

Conclusion

Resource mobility is fundamentally about the ability to shift resources from one industry to another, making option B the only accurate definition. Other options either misinterpret the concept or address unrelated economic principles, reinforcing that B is the correct choice.