Which Statement Best Describes Why People Choose to Specialize

question 131

Multiple Choice

Which statement best describes why people choose to specialize?

• A) Training is too expensive to specialize in multiple occupations.
• B) Trade creates value.
• C) Specialization increases productivity.
• D) Specialization and trade allow them to consume more than they could produce individually.

---

Definitions:

Domestic Corporation

A company that is incorporated under the laws of the country in which it is doing business.

Accrual Basis

An accounting method that records income when earned and expenses when incurred, regardless of when the cash is received or paid.

Average Annual Gross Receipts

An average of a business's total gross income over a specified period, often used to determine tax reporting requirements or eligibility for small business tax concessions.

Complete Liquidation

The process of closing a business by selling all assets, paying off creditors, and distributing the remaining assets to shareholders.