Which of the following statements is true?
A) The fundamental causes of prosperity are effective only in the short run.
B) The proximate causes of prosperity are effective only in the short run.
C) The proximate causes of prosperity are shaped by the fundamental causes of prosperity.
D) The fundamental causes of prosperity are shaped by the proximate causes of prosperity.

Question

Quizplus · Accepted Answer

The fundamental causes of prosperity (such as institutions, culture, geography, and natural resources) shape the underlying conditions for economic growth, while the proximate causes of prosperity (such as technological progress, human capital, and physical capital) are the immediate drivers of economic growth. However, the proximate causes of prosperity are shaped by the fundamental causes of prosperity. Therefore, option C is the correct statement.

Which of the Following Statements Is True