Approximately how many new businesses are started each year in the US?
A. 600,000
B. 50,000
C. 25,000
D. 4,000,000
Answer (2)
Approximately 600,000 new businesses are started each year in the US based on analyses of multiple-choice options. Lower figures like 25,000 and 50,000 are too low, while 4,000,000 is overly high. The realistic number aligns with statistics from various economic sources.
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Analyze the given options for the number of new businesses started each year in the US.
Eliminate the options that are too low (25,000 and 50,000).
Choose the most reasonable estimate from the remaining options.
The approximate number of new businesses started each year in the US is 600 , 000 .
Explanation
Problem Analysis We are asked to estimate the number of new businesses started each year in the US from the given options: 600,000, 50,000, 25,000, and 4,000,000.
Eliminating Unlikely Options Let's consider each option. It is known that the US has a large and dynamic economy. Therefore, we can eliminate the lower values such as 25,000 and 50,000, as these seem too low for the entire country.
Choosing the Most Reasonable Estimate Now we are left with 600,000 and 4,000,000. While 4,000,000 is a large number, it is a more reasonable estimate than the other options.
Determining the Answer Therefore, the approximate number of new businesses started each year in the US is 600,000.
Final Answer The correct answer is 600,000.
Examples
Understanding the rate at which new businesses start can be useful in economics and business. For example, if you're an investor, knowing the number of new businesses can help you gauge the economic health of a country. A high number of new businesses might indicate a growing and vibrant economy, while a low number might suggest stagnation or decline. This knowledge can inform your investment decisions, helping you allocate capital to areas with the most potential for growth. Also, if you are planning to start a business, knowing how many other businesses are starting can help you assess the level of competition and the potential market size.
