Question

The day-to-day living conditions of modern Americans are very different from what they were in the 20th century. While doing research for an economics project, Charlie discovers that more households today, as compared to households 100 years ago, have electricity, air conditioning, and a car. Which of the following gxplains why modern Americans enjoy a higher standard of living than Americans 100 years ago? Market failures are nonexistent. O There has been economic growth in our society. O Americans have prospered and earned more money due to a complete lack of recessions. 。The invisible hand has guided all nations around the world to this prosperity.

Answer 1

In todays Americans have more cars, electricity, air conditioning etc than the situation was 100 years ago and this phenomenon we can explain through - (b) there has been economic growth in our society. Our society has gone through various development in the last 100 yeas. We have seen technological improvements, innovations, freedom of people, property rights etc. All these factors have come together to develop the society. Ultimately we have seen economic improvement in standard of living. Because economic growth has put us in more better place.

The above phenomenon can be described from the field of economics. In the field of economics the researcher should focus on to study the development of standard of living through economic growth of society and some other factors like distribution of wealth, innovation, technology etc.