Which of these statements is correct?

Question

Question

This question was previously asked in

SSC CHSL Exam 2023 Tier-I Official Paper (Held On: 08 Aug, 2023 Shift 3)

The economic wealth of a country does not necessarily depend on the possession of resources.
Countries endowed with natural resources are naturally the richest countries.
The national income of a country is the total of all its resources.
Whether resources are used in generating a flow of output and as a result, income and wealth, is immaterial.

Answer 1

The correct answer is The economic wealth of a country does not necessarily depend on the possession of resources.

Key Points

Economic wealth of a country:-
- It depends on various factors apart from natural resources such as human capital, technology, infrastructure, and political stability.
Countries with abundant natural resources may not necessarily be the richest as they may face challenges such as corruption, conflict, and lack of diversification.
National income:-
- It is the sum of all the income generated by individuals and businesses in a country, which includes income from natural resources but is not limited to it.
The efficient utilization of resources in generating output and income is crucial for a country's economic growth and development.