Specialization and Exchange Result in

question 116

Multiple Choice

Specialization and exchange result in

• A) lower production levels than would otherwise be possible
• B) higher living standards than would otherwise be possible
• C) more down-time as workers switch activities more frequently
• D) the assignment of workers to activities according to their preferences
• E) self-sufficiency

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Definitions:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners.

Trading Investments

Trading investments are securities that a company buys and holds primarily for the purpose of selling them in the near term to generate income.

Unrealized Gains

Unrealized gains are increases in the value of an investment or asset that has not been sold, thus not yet turning the gain into cash.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies, typically through ownership of a substantial share of voting stock.