Statement I: Capitalism Is Based on Trust

question 71

Multiple Choice

Statement I: Capitalism is based on trust.
Statement II: Capitalism is often confused with democracy.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

Comprehend the factors that contribute to a country's economic freedom.

Recognize how government policies, like tariffs, can impact international business operations.

Understand the differences between state-owned, state-supported, and private enterprises and their implications for international business.

Analyze the impact of significant political events (e.g., Brexit) on international business.

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Definitions:

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a produced unit.

Unit Product Cost

The total cost, including materials, labor, and overhead, divided by the number of units produced.

Year 2

Refers to the second year of a time-related context or sequence, not a standalone key term without additional context.

Contribution Margin

The amount of revenue remaining after subtracting variable costs, indicating how much contributes towards covering fixed costs and generating profit.