Ownership of natural resources is not necessary for an economy to be highly productive because
A) productivity depends only on human capital.
B) productivity depends only on the quantity of labour a country has.
C) natural resources can be acquired through international trade.
D) natural resources are less important than a country's stock of capital goods.

Question

Quizplus · Accepted Answer

Natural resources can be acquired through international trade, which means a country does not necessarily need to own natural resources to be productive. With trade, countries can import the resources they need and export goods or services they specialize in producing. This allows countries to efficiently allocate their resources and specialize in areas where they have a comparative advantage, leading to higher productivity.

Ownership of Natural Resources Is Not Necessary for an Economy