O

O
1. The United States may need resources that it does not have from other countries so it imports them. Also, trade allows them to consume
outside their PPF.

2. a) Economic growth would increase. Saving allows industries to build.

b) It would help the public and large business. It may hurt small businesses because they have a les direct source of income.

3. a) Buying a hotdog is consumption and saving in a bank is investment. It is more of an investment.

b) Buying imports is consumption and putting a factory on another country is investment. It should be a form of investment. Yes

4) The opportunity cost is not spending right away on all the things other than capital. They can overinvest in capital. There needs to be at
least some money saved in case of emergencies, war, public places and projects. The same is true for human capital.

5) a. The US got some money out of it to put to use and they got more trade partners.
b. If America made the investment in those countries, they would have made more money in the long run.

6) A more educated workforce is a more ef cient workforce. If women had greater education, there would be more incentive for them to enter
the workforce and contribute to economy.

7) a. Better income allows people to purchase medicine or medical care when they are sick or hurt.
b. Better health allows people to work longer and harder and get more money.
c. An economy needs healthy workers to be large and successful, people need money to be healthy, so an economy needs people with
money to be successful

8) Peace allows people and businesses to trust in the future of society so they are willing to take more risks, spend money, and invest money.
Easy taxes gives people and businesses disposable income to invest, spend, and save.
Tolerable administrations of justice gives way to practices, which may not be considered positive to some, that promote economic growth.