Critics Claim That Modernization Theory

question 74

Multiple Choice

Critics claim that modernization theory

• A) amounts to an attack on capitalism.
• B) ignores how rich nations can block the economic development of poor nations.
• C) suggests that rich societies are to blame for world poverty.
• D) encourages global socialism.

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Definitions:

Contribution Margin Ratio

A financial metric that shows the percentage of revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profits.

Margin of Safety

The difference between actual or expected sales and sales at the break-even point, indicating the cushion against losses.

Sales

The total amount of revenue generated from the selling of goods or services by a company during a specific period.

Cost-Volume-Profit Analysis

Cost-Volume-Profit Analysis is a managerial accounting technique that analyzes how changes in costs and volume affect a company's operating income and net income.