What Assumption About the Past Is Made by the Proponents

question 70

Multiple Choice

What assumption about the past is made by the proponents of modernization theory?

• A) There has always been a large gap between rich and poor.
• B) Everyone was impoverished for most of human history.
• C) The rich always seek to exploit the poor.
• D) Poor people are too lazy to work their way up.

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Definitions:

Break-Even

The point at which total costs and total revenues are equal, leading to no net loss or gain.

Variable Costs

Expenses that change in proportion to the activity of a business.

Debt-to-Equity Ratio

A financial metric that shows the comparative ratio of equity to debt employed to fund a company's assets.

Return on Equity

A measure of a corporation's profitability, calculated as net income divided by shareholders' equity, indicating how effectively equity is being used.