In a Simple Economy, One Family May Produce Only Cooking

question 355

Multiple Choice

In a simple economy, one family may produce only cooking pots, but many of them. Others may specialize in farming, making clothing, and building shelters. This

• A) shows why "discrepancies of assortment" occur.
• B) is so simple that the universal functions of marketing don't have to be done.
• C) cannot work without an intermediary.
• D) is an example of "separation in values" since the different families choose to produce different things.
• E) All of the above are true.

---

Definitions:

Tax Advantage

A tax advantage refers to the economic bonus that applies to certain accounts or investments that are exempt from taxation, or taxed at a lower rate.

Rising Prices

A situation where the general level of prices for goods and services increases over a period, indicative of inflation.

LIFO Liquidation

The process of reducing inventory using the Last-In, First-Out (LIFO) method, which can impact the cost of goods sold and taxes during times of inflation.

SEC

The Securities and Exchange Commission is an agency of the U.S. government tasked with enforcing federal laws pertaining to securities and overseeing the securities industry, including stock and options exchanges.