Recall Application 5, "The Role of Political Factors in Economic

question 38

Multiple Choice

Recall Application 5, "The Role of Political Factors in Economic Growth," to answer the following questions:
-According to the application, why can't technological growth exist sustainably in authoritarian institutions?

• A) because authoritarian regimes have difficulties in coping with change
• B) because authoritarian regimes usually develop military over technology
• C) because authoritarian regimes persecute scientists
• D) because authoritarian regimes usually use religion as a tool to stay in power

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Definitions:

Sensitivity Analysis

A method for assessing the impact of varying levels of an independent variable on a specific dependent variable, assuming certain conditions.

Cost Structure

The composition of a company’s costs, including the ratio of fixed to variable costs and how these affect overall profitability.

Fixed Costs

Regardless of production or sales volumes, certain costs, like rent, salaries, and insurance, do not vary.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.