Emilia Is Studying Global Development,and in Investigating Underdevelopment in Africa,she

question 37

Multiple Choice

Emilia is studying global development,and in investigating underdevelopment in Africa,she turns to economist Jeffrey Sachs.She agrees with Sachs's point of view,that:

• A) brutal as they may be,mass poverty and starvation help balance the human population.
• B) Africa's challenges include its geography and colonial legacies.
• C) the most important factor shaping Africa's history is governmental corruption.
• D) underdevelopment is an unsolvable problem because it is rooted in private property.

---

Definitions:

Operating Leverage

Operating leverage describes the extent to which a company can increase its profits by increasing sales, highlighting the ratio of fixed costs to variable costs.

Net Operating Income

The amount of profit a company makes from its normal business operations, excluding any income or costs from investments and other non-core business activities.

Sales Volume

The quantity of goods or services sold by a company within a specific period, used to measure business performance.

High-Low Method

An accounting technique used to estimate fixed and variable costs based on the highest and lowest levels of activity or cost.