Historically, Most Harmful Bubbles Are Characterized by

question 137

Multiple Choice

Historically, most harmful bubbles are characterized by

• A)investment in stocks.
• B)the sale of Treasury bills.
• C)heaving borrowing.
• D)reliance on technology.

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Definitions:

Contribution Margin Ratio

A measurement that shows how much of a company's revenue is available to cover fixed expenses and generate profit after variable costs are covered.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance premiums.

Profit Ratio

A financial metric that measures the amount of profit generated by a business relative to aspects of its operations, such as sales.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in a profit of zero.