The U.S. economy is the largest in the world. What two factors primarily explain this? What makes the U.S. economy unique?
Sheer size of the country, with a population of about 320 million and a labor force of 144 million, contributes to the large production. But this cannot be the only element, or India's GDP would be three times as large. Efficiency is the second factor the U.S. economic system transforms inputs into output in a much more productive fashion. U.S. success is attributable to the free enterprise market system.
What makes the U.S. economy unique is its combination of prosperity and population. While there are several countries that are rich in terms of per capita GDP, they are relatively small because of their small population and geographic size. Other countries have immense populations, but have not achieved economic prosperity in terms of per capita GDP.
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Economic agents can raise money capital by ________
A) issuing liabilities B) repaying a loan C) paying taxes D) providing a subsidy
Suppose that the market price for hot dogs sold by street vendors has just risen from $4.50 to $5.00, and that in response Curly has now begun operating a hot dog cart. We can assume that Curly's reservation price for hot dogs is:
A. $5.00. B. greater than $4.50 but no more than $5.00. C. at least $5.00. D. $4.50.
The circular flow diagram of economic activity is a model of the:
A. flow of goods, services, and payments between households and firms. B. influence of government on business behaviour. C. role of unions and government in the economy. D. interaction among taxes, prices, and profits.
The idea that people will substitute cheaper commodities for more expensive commodities is called
A. the marginal effect. B. the utility effect. C. the substitution effect. D. the real-income effect.