Which of the Following Is a Difference Between Efficiency-Enhancing Innovations

question 5

Multiple Choice

Which of the following is a difference between efficiency-enhancing innovations and market-creating innovations?

• A) Unlike efficiency-enhancing innovations, market-creating innovations lead to decreasing revenue of a company.
• B) Unlike efficiency-enhancing innovations, market-creating innovations prevent companies from growing in size.
• C) Unlike efficiency-enhancing innovations, market-creating innovations create a new class of consumers.
• D) Unlike efficiency-enhancing innovations, market-creating innovations provide certainty in generating profits.

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Definitions:

Annuities

Financial products that guarantee a fixed or variable stream of payments over time, often used for retirement savings or to generate steady income during retirement.

Effective Annual Rate

The interest rate on a loan or financial product restated from the nominal rate as an annual rate, taking compound interest into account.

Compounded Value

Refers to the result of reinvesting the interest or earnings of an investment, causing it to grow exponentially over time.

Annuity Due

An annuity with payments occurring at the beginning of each period.