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topjm [15]
3 years ago
9

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 <em>"Compounding"</em> 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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Why is interest typically paid on a loan? A. to compensate the borrower for borrowing from a specific lender B. to ensure that p
Svet_ta [14]

Answer:

The correct answer is option D.

Explanation:

An interest rate is an amount charged by a lender on the use of assets. It is expressed as a percentage of the principal. The interest rate is the return on lending for a lender and the cost of borrowing for the borrower.  

Interest is typically paid on a loan to compensate for the opportunity cost of lending money. A lender could invest the money instead of lending and get a higher return from it.  

To compensate for not using the money for an alternative purpose or for temporarily making do without the money that was lent, the borrower pays a certain percentage of principal to the lender.

4 0
3 years ago
System testing:
yarga [219]

Answer:

C) tests the functioning of the system as a whole.

Explanation:

System testing refers to a process in which a complete system is evaluated to make sure that it works properly and fulfills the requirements. According to this, the answer is that system testing tests the functioning of the system as a whole.

The other options are not right because system testing doesn't separate components or programs as it involves the actual evaluation of the whole system to find defects and it is done before the acceptance testing.

3 0
3 years ago
At a sales level of $270,000, the magnitude of operating leverage for the Cake Factory is 2.8. If sales increase by 15%, profits
hichkok12 [17]

Answer:

Increase in profit will be 42 %

So option (C) will be correct answer

Explanation:

We have given sales level is $270000

Operating leverage for the factory is given 2.8

It is given that sales is increased by 15 %

We have to find that by how much percentage profit will increase

Increase in profit percentage is given by multiplication of operating leverage and increase in profit sale

So increase in profit will be equal to 2.8 ×15 = 42 %

So option (C) will be correct answer

5 0
3 years ago
Isabel and Stuart open a money market account to begin saving for the
dangina [55]

Considering the situation described above, this is an example of a "<u>Long-Term investment strategy."</u>

<h3>What is a Long-Term Investment Strategy?</h3>

Long Term Investment Strategy is a type of investment decision in which the investor hopes to reap the rewards later, usually five years or more.

Given that Isabel and Stuart opened a money market account to begin saving for the college expenses of their newborn daughter, which may take an average of 16 years or more before they reap it, this is an example of a "<u>Long-Term Investment Strategy."</u>

Hence, in this case, it is concluded that the correct answer is "<u>Long-term investment strategy."</u>

Learn more about the Investment strategy here: brainly.com/question/25730859

5 0
3 years ago
The total civilian labor force is comprised of A. all individuals over 16 years of​ age, whether or not they work or are seeking
yuradex [85]

Answer:

The correct answer is option D.

Explanation:

The total civilian labor force is comprised of employed civilian workers and unemployed workers. Discouraged workers, military personnel, federal government employees, agricultural workers, retirees, and handicapped people are not included in the civilian labor force.  

Civilian workers include private-sector workers and state and local government workers.

6 0
3 years ago
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