When an Industry Expansion Brings About Additional Specialization of Resources

question 70

Multiple Choice

When an industry expansion brings about additional specialization of resources, thus reducing production costs in that industry, we call this

• A)returns from specialization.
• B)external economies of scale.
• C)the law of demand.
• D)decreasing marginal costs.
• E)the law of increasing returns.

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Definitions:

Paid

Refers to the status of a financial obligation that has been fulfilled or settled.

Constant Annual Dividend

This refers to dividends that are paid out to shareholders at a constant rate each year, without fluctuation.

Market Price

The rate at which services or assets are being marketed currently.

Cumulative Voting

Cumulative voting is a voting system that allows shareholders to allocate their votes for the board of directors in a manner they prefer, often used to strengthen the voting power of minority shareholders.