Given below are the profit margins and fraud-related losses of four economies. Which economy will have to generate the maximum dollar amount of additional revenues to recover the loss to aggregate income? Economy A: 10%, $225 million Economy B: 10%, $150 million Economy C: 5%, $100 million Economy D: 2%, $50 million
A) Economy A
B) Economy D
C) Economy C
D) Economy B

Question

Quizplus · Accepted Answer

Economy D needs to generate the maximum dollar amount of additional revenues to recover the loss because it has the lowest profit margin (2%). To recover a $50 million loss, it needs to generate $2.5 billion in additional revenues ($50 million / 2%).

Given Below Are the Profit Margins and Fraud-Related Losses of Four