Which of the Following Is True

question 140

Multiple Choice

Which of the following is true?

• A)​Voluntary trades give both parties more in value than what they give up.
• B)​Without the ability to trade, people would not tend to specialize as much in those areas where they had a comparative advantage.
• C)​People can gain by specializing in the production of the good in which they have a comparative advantage.
• D)​All of the above are true.

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Definitions:

Bonus Expense

A cost incurred by a company for bonus payments to employees, often tied to performance metrics.

Property Tax Expense

The cost incurred by property owners for taxes levied by local governments based on the assessed value of their real estate.

Annual Major Repairs

Significant maintenance activities performed on a periodic basis to ensure the optimal function and longevity of an asset or facility.

Advertising Expense

Costs incurred by a business to promote its products or services, including media buys, production costs, and marketing materials.