APFIVE Natural Resource Reliance and Economic Stability
Which of the following best describes the typical effect of a country’s heavy reliance on natural resource extraction on its economic stability?
A
It completely insulated the economy from global market forces, ensuring long-term stability.
B
It often made the economy vulnerable to fluctuations in commodity prices, reducing diversification and long-term stability.
C
It immediately transformed the economy into one driven solely by technological innovation with no dependency on global markets.
D
It guaranteed steady, predictable growth due to constant high demand for natural resources.
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