1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
A tyre manufacturer wants to set a minimum mileage guarantee on its new MX100 tyre. Tests reveal the mean mileage is 47,900 with
maria [59]

Answer:

51,487.5

Explanation:

Calculation to determine the minimum guaranteed mileage should the manufacturer announce

Sinces no more than 4% of the tires will have to be replaced First step will be to determine the InvNorm(.96) using normal distribution table

InvNorm(100%-4%)

InvNorm(.96) = 1.75

Now let determine the minimum guaranteed mileage

Let x represent the Minimum guaranteed mileage

(2050*1.75)+47,900=x

x=3,587.5+47,900

x = 51,487.5

Therefore the minimum guaranteed mileage that the manufacturer should announce is 51,487

6 0
3 years ago
The present value of a zero-interest-bearing note given for property, goods, or services should be measured by A : using the pri
morpeh [17]
I think the answer is A. I THINK the answer is A
8 0
3 years ago
profit maximization pricing objective a. is a status quo oriented pricing objective. b. is a sales-oriented pricing objective. c
nika2105 [10]

Answer:

e. does not always lead to high prices.

Explanation:

Profit-maximization pricing means fixing prices so that total revenue is more as compared to total costs. This pricing strategy is used by a monopolist.

It is the short run or long run process by which the price and output level is determined by the firm that can give the maximum profit.

The price per item has been set higher than its total cost of production make to sure that the company makes a profit on each sale. As a result, the company makes a profit on every sale and to reduce risk and uncertainty factors in business operations.

Profit maximization pricing objective <u>does not always lead to high prices</u>.

5 0
3 years ago
Mauve company permits employees to occasionally use the copying machine for personal purposes. the copying machine is located in
serg [7]
That means they arnt paying you a lot or there not making more that there selling
6 0
3 years ago
Which of the following is a true​ statement? A. Adverse selection occurs after a transaction has taken place in insurance market
Salsk061 [2.6K]

Answer:

C

Explanation:

FDIC gives insurance to depositors. it promises to pay  back a certain amount of the deposits of a banks customers in the case where a bank fails. As a result of this insurance banks have a greater incentive to take on more risky projects because they know that their customers would be protected even the project goes sour and the bank fails.

Due to the services of the FDIC, less depositors have lost money when a bank fails because of the insurance services they provide to depositors.

8 0
3 years ago
Other questions:
  • In a flexible budget, when the activity declines, the total variable cost also declines.
    10·1 answer
  • Prepaid items on financial statements
    13·1 answer
  • Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at th
    6·1 answer
  • Sandoval needs to determine its year-end inventory. The warehouse contains 20,000 units, of which 3,000 were damaged by flood an
    5·1 answer
  • Select one of the choices below that best completes the following sentence: If an investor sold long-term bonds and used the pro
    12·1 answer
  • When a famous painting becomes available for sale, it is often known which museum or collector will be the likely winner. Yet, t
    10·1 answer
  • Yesterday, Casey received a cable company ad for bundled TV, telephone, and Internet service that cost appreciably more than wha
    8·1 answer
  • Use your understanding of the current international business environment to complete the sentence. A result of globalization is
    15·1 answer
  • By means of the internet search for an employment test that may be used in companies for selection purposes give the name of at
    14·1 answer
  • Giving brainliest to the best answer :)<br><br>​
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!