Which of the following statements is correct?
A)By definition,all natural resources are nonrenewable.
B)Market prices give us reason to believe that natural resources are a limit to economic growth.
C)An economy must be blessed with ample quantities of natural resources if it is to be a highly productive economy.
D)Differences in natural resources can explain some of the differences in standards of living around the world.

Question

Quizplus · Accepted Answer

Natural resources do play a role in explaining some differences in standards of living around the world. However, it is not a guarantee that an economy with ample natural resources will be highly productive, as there are other factors such as human capital, institutions, and technology that also play a significant role in economic growth. Market prices also do not necessarily indicate that natural resources are a limit to economic growth, as technological advancements and substitutes can shift demand away from certain resources. Therefore, the only statement that is correct is D.

Which of the Following Statements Is Correct