The U.S. economy is the largest in the world. What two factors primarily explain this? What makes the U.S. economy unique?
What will be an ideal response?
Sheer size of the country, with a population of about 330 million and a labor force of 160 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.
You might also like to view...
In the long-run, surviving firms in monopolistic competition earn:
a. higher pure economic profits. b. zero pure economic profits. c. below-normal profits. d. substantial economic losses.
Suppose that an industry's long-run supply curve is downsloping. This suggests that:
A. it is an increasing-cost industry. B. relevant inputs have become more expensive as the industry has expanded. C. technology has become less efficient as a result of the industry's expansion. D. it is a decreasing-cost industry.
Consumption is most likely to respond one-for-one with changes in current income when
A) the change in current income results from a one-time bonus. B) people believe the change in their current income is temporary. C) people are able to borrow as much as they wish, as long as they pay it back. D) the change in current income is caused by the business cycle. E) none of the above
Martha and George have just completed a nasty divorce, and Martha won the lion's share of the settlement. What can we conclude about their lawyers?
A) George's lawyer was productive, Martha's wasn't. B) Martha's lawyer was productive, George's wasn't. C) Both Martha's and George's lawyers were productive. D) Neither lawyer was productive.