Why Do Most People Choose to Specialize in a Narrow

question 272

Multiple Choice

Why do most people choose to specialize in a narrow set of skills for their work, rather than to learn a little bit about several varied fields of endeavor?

• A) They feel that doing so will minimize their chances of being unemployed.
• B) They don't correctly perceive the costs of being so specialized.
• C) It allows them to earn more income by being more productive.
• D) They are unaware of how much better off they would be if they diversified their skills.

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Definitions:

Fair Value

The estimated market value of an asset or liability, reflecting the price that two willing parties would agree to in an arm's length transaction.

Held-to-maturity

A category for debt securities that a company has the positive intent and ability to hold until maturity, reported at amortized cost.

Long-term Investment

Assets purchased by a company to hold for more than one year, typically including stocks, bonds, or real estate.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.