36. What does the term resource mobility describe?
Answer: B
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 in being transferred from one industry to another, highlighting how resources can be reallocated to maximize efficiency and productivity across different sectors.
A) An economic condition in which a nation exports more than it imports
This option describes a trade balance situation rather than resource mobility. While it pertains to international economics, it does not address the movement of resources between industries, which is the essence of resource mobility.
B) The assumption that a resource removed from one industry can be moved to another
This option accurately captures the definition of resource mobility. It emphasizes the capability of resources to be transferred and utilized in various industries, thereby enhancing overall economic efficiency.
C) The idea that market forces should determine how much to trade with little or no government intervention
While this option discusses market dynamics and trade, it does not relate to the concept of resource mobility, which focuses specifically on the physical or functional movement of resources between industries rather than trading practices.
D) The idea that governments should actively defend domestic industries from imports and vigorously promote the export of resources
This option represents a protectionist approach to trade policy rather than resource mobility. It emphasizes government intervention in trade rather than the inherent flexibility of resources within industries.
Conclusion
Resource mobility is fundamentally about the adaptability of resources in shifting from one industry to another, which is precisely captured by option B. The other options focus on trade balance, market forces, or government interventions, which do not align with the definition of resource mobility. Thus, option B is the only choice that correctly reflects the concept being tested.