The Example of the Island of Nauru, Where a Valuable

question 10

Multiple Choice

The example of the island of Nauru, 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:

General Adaptation Syndrome

A theory proposing three stages of physiological response to stress: alarm, resistance, and exhaustion.

Resistance

The refusal to accept or comply with something; in physics, it refers to the property of a material or object that impedes the flow of electrical current.

Type A Personality

Characterized by a constant feeling of working against the clock and a competitive, aggressive, and highly driven nature.

Type B Personality

A personality type characterized by a relaxed, patient, and easy-going nature, in contrast to the more intense and deadline-oriented Type A personality.