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 explains why modern Americans enjoy a higher standard of living than Americans 100 years ago?
A. Americans have prospered and earned more money due to a complete lack of recessions.
B. Market failures are nonexistent.
C. There has been economic growth in our society.
D. The invisible hand has guided all nations around the world to this prosperity.
In which field do researchers focus on investigating the phenomena described?
A. Sociology.
B. Business.
C. Political.
D. Science.
E. Economics.

Answer 1

Answer:

To the first question: C)  C. There has been economic growth in our society.

To the second question: E). Economics.

Explanation:

To the first question:

A is false because there has been several recessions in the past 100 years

B is false because markets have failures, causing the recessions mentioned above.

D is false because there are still poor countries, and the concept of "invisible hand" isn't properly explained

To the second question:

The field of economics is the most accurate description of what the researchers are focusing.

En option A they talk about the monetary variable and status of the GDP (recession is associated as decreasing in GDP)

Option B talks about the markets.

C outright spells "economic"

D "the invisible hand" is a concept invented by Adam Smith, the father of modern economics