Question

For each policy listed below, which resource is the primary focus: natural resources, physical capital, or human resources?

Policies (4 items) (Drag and drop into the appropriate area below)

• international loans for infrastructure such as roads, bridges, and dams
• mandated primary education
• restrictions on the development of forested land
• international aid for construction of a shoe factory

Resource Focus

• Natural Resources

  Drag and drop here

• Physical Capital

  Drag and drop here

• Human Resources

  Drag and drop here

Part 2   (1 point)

Some nations impose population controls in an attempt to manage their resources. Why do they do this?

Choose one:

A. to improve the human capital of the economy

B. to limit destruction of natural resources

C. There is no resource-based rationale for these policies.

D. to increase the physical capital available for each worker

Answer 1

1) International loans for infrastructure - physical capital

( infrastructure is a part of the physical capital.)

Mandated primary education - Human resource.

( Education plays an important role in improving the quality of human capital.)

Restrictions on the development of forested land - Natural resources

( Forests are a part of natural resource of a nation. )

International aid for construction of a shoe factory - physical capital.

( International aid will be given in monetary terms. Cash comes under physical capital.)

2) to increase physical capital per each worker.

(Nation's are concerned about the impact of increasing population on resources. There is a shrinkage of life supporting resources per person with increase in population.population growth affects the health of the natural environment. Nations worry than High population growth would result in an environmental catastrophe. )