Which of the following statements best explains why the U.S. consumer market is considered large in the context of economics?

• A. The U.S. consumer market is large because most citizens save rather than spend.
• B. The U.S. consumer market is large due to low levels of technological development.
• C. The United States restricts imports to maintain a large domestic market.
• D. The United States has a high population and significant purchasing power, leading to high demand for goods and services.

Answer: (D)

Verified step by step guidance

1. Understand that the size of a consumer market in economics is primarily determined by the number of consumers (population) and their ability to purchase goods and services (purchasing power).
2. Recognize that a large population means more potential buyers, which increases overall demand in the market.
3. Consider purchasing power, which depends on factors like income levels, employment, and wealth, enabling consumers to spend more on goods and services.
4. Evaluate the incorrect options: saving more reduces spending and market size; low technological development usually limits market growth; import restrictions affect trade but do not directly increase market size.
5. Conclude that the U.S. consumer market is large because it combines a high population with significant purchasing power, resulting in high demand for goods and services.