Why Do Economies Grow?. Lesson 3. Colonial Economy Mystery. North America offered no known gold or silver for the taking. There were no spices to trade. Eventually, however, the colonies were able to prosper. Why?
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North America offered no known gold or silver for the taking. There were no spices to trade. Eventually, however, the colonies were able to prosper. Why?
Are increases in the quality and quantity of the four key resources needed for economic growth and prosperity?
Lesson 3 Activity 3.1
Question A: Would you keep a savings account or want to own a farm in a nation that expropriated savings and farmland every few years?
Question D: What incentives might encourage people to save and invest?
Question E: How is infrastructure similar to investment?
Lesson 3 Activity 3.2
1. People respond to incentives in predictable ways. Rewarding people for their work, for example, encourages them to be productive.
2. People create economic systems that influence individual choices and incentives. In order for an economy to grow, its rules must include a system of incentives that encourages people to produce.
Questions for Discussion