Which of the Following Would Most Likely Increase the Net

question 5

Multiple Choice

Which of the following would most likely increase the net profit margin ratio?

• A)An increase in the unit selling price.
• B)A decrease in the overall sales volume.
• C)An increase in operating expenses.
• D)An increase in cost of goods solD.An increase in the unit selling price will increase net income by a greater amount proportionately relative to the increase in net sales.

Grasp the distinction between the statutory and actual incidence (burden) of a tax.

Identify the conditions under which tax burdens majorly fall on either consumers or producers.

Recognize the impact of government interventions like price controls and taxations on market outcomes.

Realize the implications of legalizing or banning products on market prices, quality, and associated violence.

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Definitions:

Political Action Committees

Organizations that collect funds from members and donate them to candidates or political parties to influence electoral outcomes.

Lobbying

Engaging in activities aimed at swaying the decisions of individuals in governmental positions, chiefly among legislators or regulatory agency members.

First Amendment Protection

The safeguarding of freedoms guaranteed by the First Amendment, including speech, religion, press, assembly, and petition against unlawful government infringement.

Government Officials

Individuals appointed or elected to enforce laws, conduct governance, and manage public resources and policy within a governmental structure.