Japan is a nation of over 6,800 islands, none of which is very large. The largest island, Honshu, is roughly the same size as the state of Montana in the western United States. Does this mean that Japan is destined to have low economic growth and standards of living?
1. Yes, if Japan cannot grow enough food, it will never prosper.
2. No, as long as Japan keeps its tax low, it will prosper.
3. No, Japan is rich in other resources and has advanced levels of technology.
4. Yes, Japan also lacks institutions like private property rights.
5. Yes, having so little land means there is no room to produce goods and services.
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