The Example of the Island of Naru, Where a Valuable

question 4

Multiple Choice

The example of the island of Naru, where a valuable deposit of phosphate was discovered in the early 1900s, offers the lesson that

• A)globalization and increased exports lead to higher incomes for local residents.
• B)natural resources lead to expanded, sustainable income for local residents.
• C)an open economy and world trade do not always lead to sustainable economic growth.
• D)globalization and open economies lead to poorer local economies.

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Definitions:

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value for the individuals, their employers, or their community.

Educated Labor Force

Individuals within the workforce who have achieved a certain level of education, thereby possessing skills and competencies that contribute to higher productivity and innovation.

Industrial Market Countries

Economically advanced capitalist countries of Western Europe, North America, Australia, New Zealand, and Japan; also known as developed countries and high-income economies.

World Population

The total number of living humans on Earth at a given time, a figure that has been subject to rapid growth over the last century.