Q12. Because of the compounding effect,

• large yearly growth rates are needed to achieve sustained growth.
• small changes in economic growth rate lead to large GDP changes over time.
• interest compounding allow the economy to grow faster.

Q13.

Item 13

Jerusha lives in a country with a large amount of protection under the law for conducting business or bringing her ideas to the market with patten production. Because of the economic conditions what will Jerusha most likely do with her rainwater collecting invention?

• Keep her ideas in a notebook and sell them to the highest bidder.
• Develop her invention and bring it to market with ease and minimal cost.
• Find a country where she can develop her idea away from strong patent laws.