Two Decades of Neoliberal Policies in Mexico Produced All of the Following

question 57

Multiple Choice

Two decades of neoliberal policies in Mexico produced all of the following except

• A) steady economic growth averaging 2.8 percent per year.
• B) stable poverty rates rising slightly to 70 million in 2001.
• C) steadily rising average wages.
• D) increasing employment in the informal sector and low wage maquilas.

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Definitions:

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively management is using a company’s assets to create profits.

Payout Ratio

A financial metric that shows the proportion of earnings a company pays to its shareholders in the form of dividends.

Internal Growth Rate

The highest amount of growth achievable for a business without obtaining external financing, based solely on reinvestment of its earnings.

Plowback Ratio

Also known as the retention rate, it measures the proportion of earnings that a company retains and reinvests in its operations rather than paying out as dividends.