An increase in total assets: means that net working capital is also increasing. requires an investment in fixed assets. means that stockholders' equity must also increase. must be offset by an equal increase in liabilities and stockholders' equity. can only occur when a firm has positive net income.

Which of the following best explains how trade enables greater specialization among producers? a. trade diversifies the market by bringing specialized goods from around the world. b. trade requires distribution networks and adds one more step to the production process. c. trade enables producers to open up new markets for their goods and services. d. trade allows people to focus on one kind of production and trade for their other needs.