Which of the following best explains this lack of​ prosperity?
Part 2
A. The​ large-scale production of a single resource is so environmentally damaging that it negates any revenues earned from exploiting the resource.
B. ​Ricardo's theory of comparative advantage made too many simplistic assumptions to be useful in predicting whether countries will be better off from trade.
C. While the resource endowment of the countries who do not prosper may be their only source of comparative​ advantage, their endowment is really an insignificant endowment compared to other countries in the world.
D. A country may not put in place appropriate policies to prepare for possible downturns in the price of the resource and to encourage diversification in the economy.
A. The​ large-scale production of a single resource is so environmentally damaging that it negates any revenues earned from exploiting the resource.
B. ​Ricardo's theory of comparative advantage made too many simplistic assumptions to be useful in predicting whether countries will be better off from trade.
C. While the resource endowment of the countries who do not prosper may be their only source of comparative​ advantage, their endowment is really an insignificant endowment compared to other countries in the world.
D. A country may not put in place appropriate policies to prepare for possible downturns in the price of the resource and to encourage diversification in the economy.