Question

According to the Solow growth model, rich nations are rich because: Option 1: They have abundant natural resources. Option 2: They have high population growth rates. Option 3: They have high levels of physical and human capital. Option 4: They have low levels of technological progress.

Answer 1

Option 3: They have high levels of physical and human capital.

Step-by-step explanation:

In the Solow growth model, economic growth is primarily driven by factors like capital accumulation, which includes both physical capital (machinery, infrastructure, etc.) and human capital (skilled and educated workforce).