The nation of Singapore has no natural resources to speak of, must import its water, and is very small in land mass. However, it has a very high real per capita gross domestic product (GDP) and a literacy rate of over 95%. How can such a small country with no resources be so prosperous

Singapore is rich in other resources, like human capital.

Explanation:

Since in the question it is mentioned that Singapore who has no natural resource but import its water and small portion of the land mass at the same time it has very high GDP and the literacy rate over and above 95%

So in this case, it is rich in the other resources example human capital as it is possible for a small country to make an optimum use of it also it has the nice  geographical location.

Therefore the second option is correct

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