Question

According to the authors of the textbook, “[w]ealth is created when assets move from lower- to higher-valued uses.” They also explain that “[v]oluntary transactions create wealth” (Froeb et al., 2018). The U.S. Census Bureau estimates that there are approximately 5.9 million firms within the United States as of 2015, not counting not-for-profit organizations. ______________________________________________ 1. Select a firm or an organization within the United States. Provide a brief description of the goods and/or services that the firm or organization produces. 2. Explain how this firm or organization is helping to create more overall wealth in the U.S. economy. 3. Are there any impediments that are present in the economy that impede the creation of wealth by your selected firm or organization? Explain your answer.

Answer 1

Ans 1=Economic drivers are ‘new wealth generators’ or corporations which bring new & sustainable wealth into the society by providing commodities to consumers outside of the local region. Examples of economic drivers are export-oriented businesses & tourism (e.g. Expedia Group) which sell regionally / internationally. The wealth from these economic drivers augments the monies available in the society . Technology is generating unprecedented wealth all over the world, & venture capitalists find themselves in the middle of the best prospects .

Economic supporters are corporations which circulate funds within the commune , either from the sale of commodities to members, or as suppliers to other firms. The market for these supporting sectors typically expands in size & strength as an outcome of the wealth-generating economic drivers. Some of the economic supporters are construction & retail businesses.

Ans 2=Wealth provides income-earning prospects for members, contributes to the QoL, makes the commune an attractive place to live & lessens poverty & crime rate - thereby fulfilling the vision of a healthy society.

Ans 3=Bureaucracy, red tape, and corruption may become impediments in endeavour of wealth creation.