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3 years ago

Why does a small difference in economic growth result in a large difference in wealth over time?

Business

1 answer:

larisa [96]3 years ago

7 0

Answer:

The correct answer is the option C: Because the effect of compounding allows growth to build upon previous growth.

Explanation:

To begin with, the term of "Compounding" in economics refers to the situation in which an assets' earnings are reinvested to generate more additional earnings over the pass of time and therefore that in an economy when there is a small growth the investors take advantage of the effect that the compounding has over the situation and use it in order to generate more earning in the future and that is why that the the effect of compounding allows growth to build only upon previous growth.

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Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 14 direct labor-hours at $16

Sergio [31]

Answer:

14,275= actual hours

Explanation:

Giving the following information:

The standard for a particular crane calls for 14 direct labor-hours at $16 per direct labor-hour.

During a recent period, 1,000 cranes were made.

The labor efficiency variance was $4,400 Unfavorable.

To determine the actual hours worked, we need to use the direct labor efficiency variance formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

-4,400= (14*1,000 - actual hours)*16

-4,400= 224,000 - 16actual hours

228,400/16= actual hours

14,275= actual hours

4 0

3 years ago

The Accounts Receivable account has a beginning balance of $10,000 and the company provides services of $50,000 on account durin

Marizza181 [45]

Answer:

C) $48,000

Explanation:

The account receivables is the account used to house revenue that has been earned but yet to be received in the balance sheet. It is the holding account pending the settlement of cash for services rendered or goods sold.

As such, where the Accounts Receivable account has a beginning balance of $10,000 and the company provides services of $50,000 on account during the month. The ending balance was $12,000

Let the amount received from customers be K

$10,000 + $50,000 - K = $12,000

K = $10,000 + $50,000 - $12,000

K = $48,000

8 0

3 years ago

Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 320, 300, 372, 332, a

AVprozaik [17]

Answer:

Direct labor costs= $47,760

total manufacturing overhead= $10,575

Explanation:

Giving the following information:

Production= 315 + 318 + 362= 995 units

Each unit requires 3 direct labor hours.

Hourly rate= $16

Variable overhead per unit= $5

Fixed overhead= $5,600

First, we need to calculate the direct labor hours:

Direct labor hours= 995*3= 2,985

Now, the direct labor costs:

Direct labor costs= $47,760

Finally, the total manufacturing overhead:

total manufacturing overhead= 5,600 + 5*995

total manufacturing overhead= $10,575

8 0

2 years ago

The assets of Star Company are $170.000 and the total liabilities are $10,000. The equity is

Dominik [7]

160,000

Explanation:

160,000

7 0

2 years ago

Firms that spend the greatest percentage of their revenue on advertising tend to be firms that sell

Lisa [10]

Answer:

The correct answer is D

Explanation:

Product differentiation is the term which is described as the strategy of marketing which focuses on showing off the differences among the product or the competition and the business.

So, the firm or business who spend the highest percentage of the revenue on advertising the product are the firms which sell the highly differentiated goods.

8 0

2 years ago