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:

Contractual Right

A legally enforceable claim that arises out of a contract, allowing the holder to demand performance or compensation.

AASB 132

The Australian Accounting Standards Board standard relating to financial instruments, covering the presentation, classification, and disclosures of financial instruments.

Financial Asset

An asset that derives value from a contractual claim, such as bank deposits, bonds, stocks, and derivatives.

Equity Instrument

A financial instrument that signifies ownership in a company and represents a claim on part of the company's assets and earnings.