Concerning economic growth, which of the following is true?
A) Nations achieve high rates of economic growth primarily because of their natural resource endowments.
B) Human and physical capital investments are largely irrelevant to economic growth.
C) Poor nations grow slowly because they do not have access to modern technology
D) A favorable institutional environment will tend to attract more investment in human and physical capital.

Question

Quizplus · Accepted Answer

A favorable institutional environment with strong property rights, rule of law, low corruption, etc. creates a positive investment climate that encourages businesses to invest in human and physical capital, which ultimately leads to economic growth. Natural resource endowments may contribute to growth, but they are not the primary determinant. Human and physical capital investments are crucial to economic growth, and poor nations may lag behind in growth due to lack of technology and investment.

Concerning Economic Growth, Which of the Following Is True