1)A)

B) Cars from C to D: 3 computers, Computers from E to D: 1 car

C) 18 computers and 0 cars. The PPC would stall at the x axis.

2)A) Economic growth is the increase in a country’s economic ability and

capability to produce as well as an increase in GDP.
B) While the United States devoted one-fifth of its resources to accumulate
capital, Hong Kong devoted one- third. This increased its production
possibilities and allowed it to catch up to the United States along the same PPF
in 50 years even though its population is significantly lower.
3) Keynes believed that during the times of crisis, governments should step in
to help alleviate issues by providing jobs, subsidies, and other services to
incentivize the economy to start back up, while Smith was of the notion that
the economy was fueled solely through self-interest. That a baker did not bake
bread and take payment in the form of satisfaction, nor did the customer buy
the bread simply to line the baker’s pocket. They each performed what they
did for their own benefit, the baker for money, and the customer for a good.
Both Smith and Keynes believed that the main problem capitalist economies
face is financial speculation that would take the capital invested in banks and
use it to leverage debt, rather than be used for the production of new assets
and jobs (Brady, 2014). Keynes and Smith were split on the issue of taxation,
with Smith being in support of them and Keynes being against them. While
Adam Smith was in support of taxes, he also argued that taxation should follow
the ‘four principles of fairness’, being fairness, certainty, convenience, and
efficiency. Meaning taxation should be applied based on a taxpayer’s means,
and not levied on a general basis. Certainty and convenience are used to
assure taxpayers what their money is going towards and whether or not the
process is simple. Efficiency is a measure of how said tax is collected, and
whether the process of collection ends up costing more than what is being
taxed in the first place. Keynes believed that “to prevent depressions it would
be necessary to prevent speculative bubbles. To prevent speculative bubbles, it
would be necessary to prevent too much money from accumulating in the
hands of too few people. To prevent that from happening, it would be
necessary to have high marginal tax rates on high incomes” (Yearwood, 2022).
 References

Brady, M. E. (2014, June 1). From Adam Smith to John Maynard keynes and back to Adam
Smith: The circle closes. the old economic thinking of Smith and Keynes combined is
still superior to any 'new economic thinking'. SSRN. Retrieved February 6, 2023, from
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2444038#:~:text=Both%20J
%20M%20Keynes%20and%20Adam,employment%20economic%20system%20over
%20time.

Yearwood, S. (2022, June 8). Smith and Keynes: The Economic Insight They shared. The
Globalist. Retrieved February 6, 2023, from https://www.theglobalist.com/smith-and-
keynes-the-economic-insight-they-shared/#:~:text=Takeaways-,Adam%20Smith
%20and%20John%20Maynard%20Keynes%20are%20two%20of%20the,to%20keep
%20the%20money%20circulating.