Which of the Following Statements Is TRUE

question 93

Multiple Choice

Which of the following statements is TRUE?

• A)The Heckscher­Ohlin model offers a reasonable explanation of the pattern of trade and the gains from
• Trade.
• B)The Heckscher­Ohlin trade model does not offer an explanation of the pattern of trade.
• C)The Heckscher­Ohlin trade model does not offer an explanation of the gains from trade.
• D)The Riparian trade model (with labor as the only input) offers a better explanation of the pattern of trade and the
• Gains from trade than the Heckscher­Ohlin model.

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Definitions:

Sales Mix

Sales mix is the proportion of different products or services that a business sells, impacting the overall profitability based on the differing margins of each item.

Operating Income

Profit realized from a business's core operations, calculated before taxes and interest.

Contribution Margin Ratio

A financial metric showing the percentage of sales revenue remaining after variable production costs have been deducted, indicating how much contributes towards covering fixed costs and generating profits.

Net Operating Income

Profit generated from a company's regular business operations, excluding deductions for interest and taxes.