After Trade Opens,the Short Run Impact on the Income of the Variable

question 38

Multiple Choice

After trade opens,the short run impact on the income of the variable factor will be

• A)a decrease.
• B)an increase.
• C)zero.
• D)indeterminate, depending on the consumption pattern of the owners of the variable factor.

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Definitions:

Net Profit Margin Percentage

A financial ratio that shows the percentage of net income derived from total revenue, emphasizing the profitability of a company after all expenses have been deducted.

Financing Activities

These activities generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company’s owners, such as selling or repurchasing shares of common stock and paying dividends.

Cash Inflow

Cash inflow is the movement of money into a business from various sources, including sales, investment income, and financing activities.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.