Economics And Naked Economics: Undressing The Dismal Economy

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A high standard of living is the level of wealth, comfort, material goods and necessities available to a certain socioeconomic class or a certain geographic area. To sum it up, your lifestyle is based on where you live. If you live in an area of poverty, then your setting is most likely surrounded by poverty. Charles Wheelan, author of Naked Economics: Undressing the Dismal Science, stated that Human capital is what makes an individual, productivity is what determines our standard of living (Wheelan,301). Economic growth, measured as the growth rate of per capita real GDP, is the key determinant of living standards in nations across time. (Coppock, ) To avoid such a low standard of living places like The United States of are in the process
International trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). International trading has its comparative advantages. Gains arise when a nation specializes in production and exchanges output with a trading partner, Meaning each nation should produce goods they are the best at making. When that happens the transaction leads to lower cost of production and maximizes the combined output of all nation involved. For example California shouldn’t try to produce and sell coconuts, it would be too expensive because they don’t have the right climate, where else in Indonesia it would be cheaper because it has the right climate for
Impoverished countries don’t have the knowledge or material to advance. Like Globalization101 said, these types of countries are in poverty traps, which can be difficult to heal in sustaining a great economy growth. Unlike the U.S the impoverished countries have a better selection of natural resources, where the US has to either trade for it or pay lots of money to produce it themselves. Even with great natural resources to trade the impoverished countries are still not prospering as much as the U.S One of the reasons is that these countries need more factors like the US to sustain a great economy. They have on aspect which is beneficial, but it won’t give them the gain they need to pull out of such harsh

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