Why, in a rich nation, is it important that we fully use our resources and technology to maximize our nation’s output? Is it only the level of total output that is important, or are the types of output that we produce also important? Do you think that the distribution of this output is just as important as its total amount?By using our resources and technology to their fullest, we increase our production and we generally assume that this raises our standard of living. Greater output also implies that we can be more generous in our foreign aid to poorer nations. Types of outputare also important. For example, if we producemilitary goods instead of public health goods, the average standard of living maybe adversely affected. If we produce capital goods instead of consumer goods, the capital goods go into our resource supply and cause greater economic growth in the future (and greater production of both capital and consumer goods). Less developed countriesface agonizing choices when deciding between currentand future consumption, such as investment in capital goods that may benefit themin the future versus production of food products that consumers may desperatelyneed now. Investment in human capital (health and education) creates economic