Economics !!!!?

Question

explain how producing an increased amount of goods from existing resources could increase prosperity..

i am in the 19th grade

pls give examples (sorry to ask so much) thanks so much!!!! :)

Answer 1

Hey Katie!

Imagine we only have one resource; labour.

In fact imagine there is only one person in the economy - Robison Crusoe...

at the moment he can farm three coconuts a day, and so his welfare = the welfare from three coconuts.

If he learns (see this as increased technology) how to farm coconuts better then he will be able to farm five coconuts a day. And his welfare = the welfare from five coconuts.

Basically if we can produce more from the same amount of stuff we are going to be better off.