The Most Important Factor Adversely Affected by the Lack of Structural

question 22

Multiple Choice

The most important factor adversely affected by the lack of structural reforms in Latin America is:

• A) inflation
• B) G and T
• C) the growth of potential real GDP.
• D) corruption
• E) oil prices

---

Definitions:

EBIT

A financial metric called EBIT that calculates a company's profits prior to the deduction of interest and income tax costs, encompassing all other expenses.

Operating Leverage

A financial metric that measures the proportion of fixed costs in a company's cost structure, indicating how a change in sales volume will affect operating income.

Variable Cost

Costs that vary directly with levels of production or sales volume, such as materials and labor.

Cost Structure

This refers to the types and relative proportions of fixed and variable costs that a business incurs.