"It Was One of the Paradoxes of U

question 26

Essay

"It was one of the paradoxes of U.S.economic development that the very expansion of the frontier and the occupation of new land was perhaps a retarding factor in economic growth during the early period.Capital and labor were drawn off to regions not easily accessible and were not immediately translated into increased output and productivity." Reconcile this apparent paradox.

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Definitions:

Output

The amount of goods or services produced by a business, sector, or economy over a specific period.

Explicit Costs

Direct, out-of-pocket payments for costs of production, such as wages, rent, and materials.

Entrepreneur's Potential Earnings

The forecasted income an entrepreneur can expect from their business venture, taking into account risks and opportunities.

Annual Lease

A contract for the rental of property, typically real estate, that lasts for one year.