Economists use the term “human capital” to refer to education an job skills. How is education like a piece of capital? Many people say that natural resources like oil an minerals are the way to...

Economists use the term “human capital” to refer to education an job skills. How is education like a piece of capital? Many people say that natural resources like oil an minerals are the way to prosperity. Indeed, in an old cartoon by Matt Groening, creator of The Simpsons, a professor taught his students, “The nation that controls magnesium controls the universe!” But natural resources have been left out of this chapter completely. Is this a big mistake? (Source: Sala-i-Martin, X., G. Doppelhofer, an R. Miller, Determinants of long-term economic growth: A Bayesian averaging of classical estimates (BACE). The American Economic Review, Vol. 94, No. 4 (Sep. 2004), pp. 813–835.) a. Here are the 10 countries in the world that have the highest amount of hydrocarbons (oil, natural gas, etc.) per person, in rank order: 1. Kuwait 2. United Arab Emirates (UAE) 3. Saudi Arabia 4. Iraq 5. Norway 6. Venezuela 7. Oman 8. Iran 9. Trinidad an Tobago 10. Gabon Use the CIA World Factbook, a convenient online source of information, to see if most of these countries are prosperous. How many of these 10 countries have a GDP per person that is at least half of the U.S. level? How many are less than 10% of the U.S. level? Are any actually higher than the U.S. level? b. Now, let’s look at the reverse: Let’s see if the 10 richest countries in GDP per capita have a lot of hydrocarbon wealth: 1. Luxembourg 2. United States 3. Singapore 4. Hong Kong 5. Norway 6. Australia 7. Sweden 8. Canada 9. Denmark 10. Japan The one country on both lists also makes another list in this chapter. Which one is it?