The Specialization in Production Made Possible by the Use of Money

question 106

Multiple Choice

The specialization in production made possible by the use of money to avoid barter is an illustration of the

• A) scarcity principle.
• B) principle of comparative advantage.
• C) principle of increasing opportunity cost.
• D) benefits of diversification.
• E) cost-benefit principlE.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Corporate Ownership

Refers to the ownership of shares in a corporation, determining the distribution of control and benefits among shareholders.

Dividends

Payments made by a corporation to its shareholders, often derived from profits.

Bring Suit

To initiate a legal action against someone in a court of law.