To analyze:
The reason for the U.S. is considered the biggest economy.
Answer to Problem 1DQ
The reasonfor U.S. being the biggest economy is its unique combination of prosperity and population.
Explanation of Solution
The U.S. economy is the biggest economy in the world. The reason is its unique combination of prosperity and population. Switzerland is a richer country and India is a more populous country. No other country merges high population with high per capita income the way U.S. does. Though, China comes close to U.S. despite its high labor force of almost double the entire population of U.S. However, China's per capita income is far lower than the U.S. Hence, U.S. remains the "land of opportunity".
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Chapter 2 Solutions
Bundle: Microeconomics: Principles and Policy, Loose-leaf Version, 13th + MindTap Economics, 1 term (6 months) Printed Access Card
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