Final answer:
Productive resources will tend to flow away from car production if there is a decrease in their productivity or a change in input prices causing a shift in resources to more profitable avenues.
Step-by-step explanation:
More productive resources will tend to flow away from the production of cars if resources flow away from car production. This is because the allocation of resources is heavily influenced by their return on investment. When resources become less productive in the car production sector, or if the cost of inputs decreases making it cheaper to produce cars, the supply of cars increases, and producers may allocate resources elsewhere to gain a higher return.
If one input becomes relatively more expensive, firms will often react by seeking alternative production technologies or inputs to maintain cost efficiency. The law of diminishing returns implies that adding more of a productive resource to a fixed amount of another resource will eventually yield lower per-unit returns. Hence, firms are continually adapting to changes in resource costs to maintain productive and allocative efficiency.