Which Theory Argues That the Rich-Poor Gap Present Today Is

question 27

Multiple Choice

Which theory argues that the rich-poor gap present today is a relic of the worldwide economic pattern established during the Industrial Revolution and by the forces of colonialism? ​

• A)mercantilism
• B)dependency theory
• C)imperialism
• D)consumption theory
• E)globalization

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Definitions:

Stand-alone Risk

The risk associated with a specific project or investment, considered independently from the broader company or portfolio risks.

NPV

Net Present Value; a calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate.

WACC (Weighted Average Cost of Capital)

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including equity and debt.

IRR (Internal Rate of Return)

The rate of return that brings the total net present value of all cash flows from a given project to zero.