Economists often refer to the "natural resource curse," by which they mean that large amounts of natural resources tend to create bad politics because as long as the oil keeps flowing, political leaders don’t need to care much about what goes on in the rest of the country. a. which one of the three factors of production do you think matters most to a leader of a resource-rich country? why? (note: does this explain what you see happening in many resource-rich countries? ) b. which one of the five key institutions do you think matters most to a leader of a resource-rich republic? why? (note: does this explain what you see happening in many resource-rich countries? )

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

fractionally backed paper money

fiat money

paper money

metallic money

answer; the cpi;