Explain the difference between poverty in the United States and poverty in the rest of the world.
What will be an ideal response?
Poverty in the United States is about relative deprivation, meaning that poor people have much less than the average American. However, the U.S. poor are much better off than the poor in other countries, where poverty is about absolute deprivation. In addition, compared to global poverty, poverty in the United States is less permanent.
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Which of the following is a shortcoming of GDP?
a. GDP measures used goods and services. b. GDP includes changes in inventories. c. GDP includes the value of net exports. d. GDP does not make an allowance for leisure time.
Although popular opinion frequently portrays trade deficits (actually, account deficits) as "bad," can you present economic reasons why a trade deficit might be considered "good"?