Which of the following statements about the resource curse (an abundance of natural resources) is true?
a. The discovery of significant petroleum resources is particularly likely to create authoritarian government and a troubled economy.
b. An abundance of natural resources (such as diamonds, precious metals or petroleum) tends to produce greater government corruption in developing nations.
c. Countries that are rich in natural resources tend to spend a higher percentage of their government budgets on education.
d. In the developing world, the discovery of valuable natural resources normally leads to more rapid economic growth.
Question 2
Factors other than national wealth can affect a countrys score on the Human Development Index. Which of the following countries has achieved a higher HDI score than its level of wealth would lead us to expect?
a. Chile
b. Saudi Arabia
c. China
d. Nigeria
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