Specialization and Trade Are Closely Linked to

question 27

Multiple Choice

Specialization and trade are closely linked to

• A)absolute advantage.
• B)comparative advantage.
• C)gains to some traders that exactly offset losses to other traders.
• D)shrinkage of the economic pie.

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Definitions:

General Cash Offers

A public offering in which securities are sold for cash to the general investing public.

Flotation Costs

The costs associated with issuing new securities, including underwriting fees, legal expenses, and registration fees.

Rights Offerings

A method by which a company raises capital by giving existing shareholders the right to buy additional shares at a discount.

Market Value

The existing market price for the acquisition or sale of an asset or service.