Which statement best explains 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 remain undeveloped.
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

Economists generally believe that while natural resources can be beneficial for economic growth, they are not the sole determinant of a country's level of development. Countries with fewer natural resources can still achieve high standards of living through factors such as human capital, innovation, and trade. Therefore, choice D is the best explanation of economists' understanding of the relationship between natural resources and economic growth.

Which Statement Best Explains Economists' Understanding of the Facts Concerning