Diversification in Investment Is Achieved When

question 109

Multiple Choice

Diversification in investment is achieved when:

• A) the government invests in several projects of different lengths to increase total output.
• B) a business produces multiple unrelated products so that the firm can maximize profit.
• C) an economy trades with multiple trading partners for maximum benefit.
• D) an individual invests in several assets with independent or unrelated risks so that total risk from loss is reduced.

---

Definitions:

Basic Needs

Fundamental requirements necessary for individuals to live a healthy and satisfactory life, such as food, water, shelter, education, and healthcare.

Investment Climate

The economic, financial, and socio-political environment influencing the willingness and ability of individuals and firms to invest in a particular country or region.

Semiperipheral Countries

Nations that are midway between the core and periphery in the world economic system, showing characteristics of both developed and developing countries.

Peripheral Countries

Nations that are less developed economically and politically, often exploited by more developed countries.