Which of the Following Is Not a Reason Why Specialization

question 38

Multiple Choice

Which of the following is not a reason why specialization and trade are beneficial to society?

• A)The total output of economic goods may be increased even without any increase in resources.
• B)Scarce resources are utilized more efficiently by exploiting differences among them.
• C)Specialization fosters learning by doing, thus lowering the unit-costs of products.
• D)Firms and workers become less dependent on others for producing goods and services.

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Definitions:

Normal Balance

The side (debit or credit) on which increases to an account are recorded, based on the type of account.

Normal Balances

Refers to the side of an account (debit or credit) where increases in the account are recorded.

Accounts

Financial records that track the transactions and balances for specific items such as assets, liabilities, equity, revenue, and expenses.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities or equity on a company's balance sheet.