Question #10
Reading: Reading 6 Economic Growth
PDF File: Reading 6 Economic Growth.pdf
Page: 5
Status: Unattempted
Correct Answer: B
Question
Which of the following situations is least likely to constrain growth in an economy?
Answer Choices:
A. Strong domestic currency appreciation due to demand for domestically owned natural resources
B. A lack of access to natural resources
C. Limited ownership of natural resources
Explanation
A lack of access to natural resources could well restrain growth. Currency appreciation will
lead to high export prices and uncompetitive domestic industries in the global market. A
lack of ownership of natural resources need not hinder growth as long as the economy
has access via trade.