Referring to the concept of an "invisible hand" allocating resources across industries in response to economic profits and losses. 1. Give an example of an industry that has been growing in response to economic profits. 2. Give an example of an industry that has been shrinking in response to economic losses. 3. When large firms/industries suffer economic losses and are at risk of going bankrupt, they often go to the government for help in the form of loans or even bailouts (e.g. the airline industry received tens of billions from the government in mid-2020 to keep them afloat when passenger travel plummeted as a result of the pandemic). Do you think government support for failing businesses is generally warranted or not? What does it depend on?
Referring to the concept of an "invisible hand" allocating resources across industries in response to economic
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