Summary18 - the recent Asian crisis, the United States has...

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CHAPTER 18 SUMMARY: 1. Are people currently living in the United States materially better off than the early inhabitants of the North American continent? The early inhabitants of this continent lived in agrarian societies. Most of their time was spent gathering food and making clothing and shelter. Rates of infant mortality were high and life expectancy was low. The economic growth and development that has occurred since then has made us materially much better off. 2. What causes economic growth? The main sources of economic growth are increases in the labor supply, the stock of physical and human capital, and productivity. 3. How does the United States compare with other countries? Does Sweden have the highest standard of living in the world? The United States has experienced dramatic economic growth over the past 150 years. While the rate of economic growth has been higher in some countries, notably many Asian economies until
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Unformatted text preview: the recent Asian crisis, the United States has the highest per capita real GDP in the world. This is a common measure of the standard of living. 4. What policies can be adopted to promote economic growth? Policies that improve the quality of education, increase the rate of savings and investment, and promote more research and development will promote economic growth. 5. What is so good about growth? Are there some downsides to it? Economic growth increases the affordability, availability, and quality of the goods and services in an economy. It allows people to have more things, more time, and more opportunities. As with everything, however, there are costs associated with increased development. Some sectors of the economy may lose out, traditional ways of living and working will be altered, there will be increased demands placed on the environment, and other problems will arise....
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