In Order for Societies to Reap the Gains from Trade

question 87

Multiple Choice

In order for societies to reap the gains from trade, it is necessary to

• A)foster economic growth.
• B)define and enforce property rights.
• C)distribute resources equally.
• D)achieve productive efficiency.

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Definitions:

Income Statement

A financial document that shows a company's revenue, expenses, and profits or losses over a specific period.

Total Revenues

The total amount of income generated by a business from its sales of goods or services before any expenses are subtracted.

Capital Account

An account showing the net worth of a business at a specific point, accounting for assets minus liabilities.

Statement of Owner's Equity

A financial document that summarizes the changes in the equity of a company over a period, including investments, withdrawals, and the net income or loss.