The ________ suggests that a sustainable development path for countries that depend on nonrenewable resources requires the rents from those resources to be continually invested rather than consumed.
A) Hartwick rule
B) Solow growth model
C) Malthus theory
D) Ricardo rule

Question

Quizplus · Accepted Answer

The Hartwick rule, also known as the Rule for Sustainable Depletion, states that countries that rely on nonrenewable resources for their wealth and development should invest the rent generated from these resources into other assets, such as infrastructure or education, so that they can sustain their growth even after the resources have been depleted. This approach ensures that the benefits of nonrenewable resources are not consumed entirely in the present but are retained for future generations. The Solow growth model is a theoretical framework that explains how economies grow over time, but it does not address sustainability or nonrenewable resources specifically. Malthus theory is a prediction that population growth will outstrip the available resources, leading to a crisis, and Ricardo rule is not a widely recognized concept in economics.

The ________ Suggests That a Sustainable Development Path for Countries