Alaska is located in the extreme northwest portion of the North American continent. It is the largest U.S. state in terms of area by a substantial margin, along with being one of the wealthiest and most racially diverse. Alaska is one of two U.S. States not bordered by another state, Hawaii being the other. It is the only non-contiguous state in North America, and about 500 miles of Canadian territory separate Alaska from Washington State.

The climate in Juneau and the southeast panhandle is best described as a "cooler version of Seattle". On an annual basis, this is both the wettest and warmest part of Alaska with milder temperatures in the winter and high precipitation throughout the year.

The climate in south central Alaska, with Anchorage as a typical city, is mild by Alaskan standards. This is due in large part to its proximity to the coast. While it does not get nearly as much rain as the southeast of Alaska, it does get more snow.

The climate of the interior of Alaska is best described as extreme and is the best example of a true subarctic climate. Some of the hottest and coldest temperatures in Alaska occur around the area near Fairbanks.

The cost of goods in Alaska has long been higher than in the contiguous 48 states. This has changed for the most part in Anchorage and to a lesser extent in Fairbanks, where the cost of living has dropped somewhat in the past five years. Alaska is one of only six states with no state sales tax and one of seven states that do not levy an individual income tax. To finance state government operations, Alaska depends primarily on petroleum revenues.

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