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Briefly Explain Why, Until 2008, Americans Amassed Record Amounts of Debt

question 136

Essay

Briefly explain why, until 2008, Americans amassed record amounts of debt and why the free-spending trend has ended.


Definitions:

Marginal Cost

The production cost for one more unit of a product.

Production

The process of creating goods and services through the combination of labor, capital, and natural resources.

Pizza

A popular dish originating from Italy, consisting of a round, flattened base of leavened wheat-based dough topped with tomatoes, cheese, and various other ingredients.

Optimal Level

The most favorable point at which the benefits of an action exceed its costs the most, often related to production or consumption.

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