Question

What is the primary macroeconomic concept that measures the standard of living in a country and how is it defined?

What particularly important role do courts play in a market economy?

In what sense is it likely that geography has an effect on a country’s rate of economic growth?

Answer 1

Macroeconomic is the branch of economics that studies the behavior and performance of an economy as an whole. It focuses on, unemployment, growth rate, GDP and inflation. Economists mainly measures standard of living with use of gross domestic product. Per capita GDP helps to provide a quick, rough number of total amount of good and services available to a person, this is how standard of living is measured.

Courts play a crucial role in a market economy, without an effective judicial system they functioning of the economy will be abysmal. Courts secure property rights, enforce contracts, and contribute to sustainable commercial activities. Hence courts are very crucial for the functioning of market economy.

Location and climate has a huge impact on the income levels and income growth. Geography also effects a country's choice of economy policy, the distribution of natural resource has an effect on the economy and this in turn will help to determine a country's growth. A country with favorable geographical conditions will have an better economic growth than an country without not favorable economic conditions.