Label the statements as true or false.

All else equal, countries with more natural resources have a higher GDP per capita than those with few natural resources.

Over the past two hundred years, improvements in productivity have offset lost productivity reduction due to less land being available. The key to prosperity in the 20th century is an economy rich in natural resources.

Human and physical capital are only beneficial to an economy when there is an abundance of natural resources in the economy.

(a) All else equal, countries with more natural resources have a higher GDP per capita than those with few natural resources.

Answer:True

All things being equal (economic indices and variables) countries with more natural resources will have a higher GDP per capital than those with few natural resources.

(b) Over the past two hundred years, improvements in productivity have offset lost productivity reduction due to less land being available.

Answer: True

There have been significant improvements in productivity in the last 19th and 18th centuries.

(c) The key to prosperity in the 20th century is an economy rich in natural resources.

Answer: False

Findings have shown that most developing economies have large amount of natural resources, but however are retrogressive, with high poverty levels.

(d) Human and physical capital are only beneficial to an economy when there is an abundance of natural resources in the economy.

Answer: False

A good number of developed economies do not have abundant deposits of natural resources, but however are known to have progressive economies.

Explanation:

(a) All else equal, countries with more natural resources have a higher GDP per capita than those with few natural resources.

Answer:True

All things being equal (economic indices and variables) countries with more natural resources will have a higher GDP per capital than those with few natural resources.

(b) Over the past two hundred years, improvements in productivity have offset lost productivity reduction due to less land being available.

Answer: True

There have been significant improvements in productivity in the last 19th and 18th centuries.

(c) The key to prosperity in the 20th century is an economy rich in natural resources.

Answer: False

Findings have shown that most developing economies have large amount of natural resources, but however are retrogressive, with high poverty levels.

(d) Human and physical capital are only beneficial to an economy when there is an abundance of natural resources in the economy.

Answer: False

A good number of developed economies do not have abundant deposits of natural resources, but however are known to have progressive economies.