Which of the following best states economists' understanding of the facts concerning the relationship between natural resources and economic growth?
A)A country with few or no domestic natural resources is destined to be poor.
B)Differences in natural resources have virtually no role in explaining differences in standards of living.
C)Some countries can be rich mostly because of their natural resources, and countries without natural resources need not be poor, but can never have very high standards of living.
D)Abundant domestic natural resources may help make a country rich, but even countries with few natural resources can have high standards of living.

Question

Quizplus · Accepted Answer

While abundant natural resources may help a country become wealthy, it is not a guarantee. Countries without significant natural resources can still achieve high standards of living through other means, such as education, innovation, and trade. Thus, the relationship between natural resources and economic growth is not deterministic, and other factors also play crucial roles.

Which of the Following Best States Economists' Understanding of the Facts