Chapter Questions
Americans already enjoy living standards that far exceed world averages. Do we have enough? Should we even try to produce more?
Why is per capita GDP so much higher in the United States than in Mexico?
Can we continue to produce more output every year? Is there a limit?
The U.S. farm population has shrunk by more than 25 million people since 1900 . Where did all the people go? Why did they move?
Is the relative decline in U.S. farming and manufacturing (Figure 2.2) a good thing or a bad thing?
How many people are employed by your local or state government? What do they produce? What is the opportunity cost of that output?
Where do growing companies like Google and Facebook get their employees? What were those workers doing before?
Should the government try to equalize incomes more by raising taxes on the rich and giving more money to the poor? How might such redistribution affect total output and growth?
Why are incomes so much more unequal in poor nations than in rich ones?
How might free markets help reduce global poverty? How might they impede that goal?