The Improvement in Outcomes That Occurs When Specialized Producers Exchange

question 81

Multiple Choice

The improvement in outcomes that occurs when specialized producers exchange goods and services is called:

• A) gains from trade.
• B) absolute advantage.
• C) comparative advantage.
• D) specialization.

---

Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present values, often reflecting the risk or the cost of capital associated with an investment.

Expected Growth

The anticipated increase in size, value, or importance, often measured in terms of revenue, profits, or market share for businesses.

Dividend Amount

The total sum of money paid by a corporation to its shareholders, determined by multiplying the dividend per share by the total number of shares a shareholder owns.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, expressed as a percentage, indicating the income investors receive in relation to the price of the stock.