The Practice of Not Putting All of Your Eggs in One

question 54

Multiple Choice

The practice of not putting all of your eggs in one basket is an illustration of ________.

• A)variance
• B)diversification
• C)portion control
• D)expected return

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Definitions:

Final Output

The total value of goods and services produced by an economy after adjusting for intermediate goods used in production, representing the end products available for consumption, investment, exports, and government spending.

Aggregate Expenditure

The total spending on goods and services in an economy during a specific period, including consumer spending, investment, government spending, and net exports.

Consumption Expenditures

Spending by households on goods and services, excluding new housing.

Value Added

Describes the additional worth created at each stage of production or distribution, calculated as the difference between the cost of inputs and the price of outputs.