Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Chapter 16, Problem 2CQ
To determine
Explain the source of the
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which is most important to economic development—culture, geography, or institutions?
Some resource-rich countries have succeeded in converting resource wealth into longterm and equitable economic development, while many others have not. Natural resources have played a fundamental role in the growth of several industrialized economies, including Germany and the United Kingdom, where coal and iron ore deposits were a precondition for the Industrial Revolution. The United States was the world’s leading mineral economy from the mid-nineteenth to the mid-twentieth century and in the same period became the world’s leader in manufacturing (van der Ploeg 2011). More recently, countries such as Botswana, Chile, and Norway have used abundant oil and mineral resources as the foundation for economic growth.
Discuss in depth, based on your understanding of the various sources of fiscal risks what complicates fiscal management in resource rich countries. Taking Zambia as a case study, suggest ways in which these risks can be managed.
Draw a production possibilities frontier for a country that produces two goods: capital goods and consumption goods. Show a point of production that will allow a country to achieve the maximum amount of future growth while still producing a small amount of consumption goods.
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Economics: Private and Public Choice
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- Jamaica has been lagging in economic growth behind the other islands in the Caribbean. Why and what can be done to mitigate the situation"arrow_forwardCreate an entrepreneurship and socio-economic development relationship mind map. In your relationship mind map, you illustrate the interconnectivity of entrepreneurship and socio-economic benefitsarrow_forwardWhat other factors, aside from labor productivity,capital investment, and technology, impact the economicgrowth of a country? How?arrow_forward
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