Which of the following is true about economic growth?
A) The United States is rich because it has democratic political institutions.
B) Economic growth is primarily the result of gains from trade, discovery of better ways of doing things, and capital investment.
C) Without foreign aid, poor countries are unable to break the cycle of poverty, low savings and investment, and economic stagnation.
D) Most all countries with an abundance of natural resources have been able to achieve rapid growth and high levels of per capita income.

Question

Quizplus · Accepted Answer

Economic growth is primarily the result of gains from trade, discovery of better ways of doing things, and capital investment. While political institutions and access to foreign aid can certainly have an impact, they are not the primary drivers of economic growth. Additionally, having an abundance of natural resources does not always lead to rapid growth and high levels of per capita income, as factors such as government policies and economic institutions also play a role.

Which of the Following Is True About Economic Growth