Over the past several decades, the United States has devoted a greater fraction of its resources to consumption than Hong Kong, which is why the U.S. economy grew faster than Hong Kong's economy.

Question

Quizplus · Accepted Answer

The growth rate of an economy is influenced by various factors including investment in capital, technological advancements, and improvements in human capital, not just the fraction of resources devoted to consumption. High consumption can actually lead to lower savings and investment rates, potentially slowing economic growth. Hong Kong has experienced significant economic growth rates, often attributed to its strong investment in infrastructure and business, open market policies, and strategic trade location, despite its high savings rate and lower consumption as a fraction of GDP compared to the U.S.

Over the Past Several Decades, the United States Has Devoted