According to Prebisch and Other ISI Theoreticians,countries Should Begin to Shift

question 2

Multiple Choice

According to Prebisch and other ISI theoreticians,countries should begin to shift their comparative advantage away from primary commodity production by first producing

• A)industrial goods such as pumps and generators.
• B)complex consumer goods such as autos and appliances.
• C)advanced industrial goods such as chemical and electronics.
• D)simple consumer goods such as food products and textiles.
• E)minerals and agricultural products.

---

Definitions:

Variable Cost Per Unit

The cost associated with producing one additional unit of a product, which varies with the level of production.

Contribution Margin Ratio

The contribution margin ratio calculates the proportion of sales revenue that exceeds variable costs, showing what portion of sales contributes to covering fixed costs and generating profit.

Selling Price

The amount at which a product or service is sold to customers, determined by factors such as market demand, production costs, and competition.

Variable Cost

Costs that vary directly with the level of production or business activity.