Question

Identify whether the statements below are true or false by dragging and dropping the appropriate term into the bin provided.

A. Long-run economic growth is unlikely to be sustainable because of finite natural resources.

B. In the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically.

C. Finding alternatives to natural resources will be very important to long-term economic growth.

D. In the modern economy, human and physical capital are generally less important in productivity than natural resources.

E. In the 19th century, countries with the highest per capita GDP were nearly always abundant in minerals and productive farming land.

Answer 1

Solution and Explanation:

1. False- Long run Economic growth is likely to be sustainable because of finite natural resources as othe man made resources will be available to sustain growth.

2. False- In mordern economy posesing few natural resources will not affect a country to develop economically; human resources and man made resources will also contribute. Foreign trade can also play an important role towards growth, in the absence of abundant natural resources.

3. True- Natural resources are vital, and mostly exhaustible. Hence it is very essential to find suitable alternatives.

4. False- Economies of 21st century depend on human capital due to depletable atural resources.

5. True - In the 19th century, minerals and farming land were the most mportant resources, since self sustainability was in vogue.