As with New Technology, Trade Can Be Viewed as a Way

question 89

Multiple Choice

As with new technology, trade can be viewed as a way for:

• A) an economy to increase its production possibilities and welfare
• B) an economy to specialize to the detriment of everyone
• C) exporters to benefit at the expense of everyone else
• D) an economy to reduce its aggregate production
• E) None of these answers are correct.

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Definitions:

Contribution Margin Ratio

A financial metric that shows the percentage of sales revenue that exceeds variable costs, essentially calculating the portion of sales available to cover fixed expenses.

Margin Of Safety

The difference between actual or expected sales and the sales level at which the business breaks even, indicating the risk level of not covering fixed costs.

Margin Of Safety Percentage

A financial metric that indicates the degree to which a business's sales can decline before it reaches the break-even point.

Net Operating Income

A financial metric that calculates a company's operational profit by subtracting operating expenses from operating revenues.