Specialization and Trade Can Create More Wealth (Output of Goods

question 154

Multiple Choice

Specialization and trade can create more wealth (output of goods and services) :

• A)​when we only trade for things we could not produce ourselves.
• B)​when each person specializes in what they do relatively best and trade for the rest.
• C)​only if we gain and other countries lose.
• D)​only with certain nations.

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Definitions:

Return on Investment

A measure of the financial gain or loss on an investment relative to the amount of money invested.

Operating Assets

Assets used by an organization in its day-to-day operations to generate revenue, excluding investments and inventory.

Residual Income

The amount of net income an entity has after deducting all necessary expenses and required returns on investments, representing leftover earnings.

Operations

The activities involved in the day-to-day functions of a business related to producing and delivering its products or services.