Which of the following is most important if a country is going to grow rapidly and achieve a high level of per capita income?
A) An abundance of natural resources.
B) A warm moist climate.
C) A small population relative to the geographic size of the country.
D) Institutions and policies that encourage people to engage in productive activities.

Question

Quizplus · Accepted Answer

While natural resources and climate can certainly contribute to economic growth, they are not sufficient on their own. A small population can also help, but it is not a guarantee. The most important factor for sustained and rapid economic growth is having institutions and policies in place that encourage and support productive activities, such as investing in education, technology, and infrastructure, promoting entrepreneurship and innovation, protecting property rights, and establishing a stable and transparent legal and regulatory framework.

Which of the Following Is Most Important If a Country