Which Statement Reflects a Negative Argument That Is Associated with Relying

question 54

Multiple Choice

Which statement reflects a negative argument that is associated with relying on natural resources for development, which can limit a country's growth potential?

• A) When a nation is a major supplier of a natural resource product (such as oil), then it can influence the world price of the product and gain higher profits.
• B) Reliance on one natural resource that is extracted from the ground (such as oil) means that there is a risk that the supply of the resource can be used up, leaving the country without the skills required to produce alternative goods.
• C) Natural resources are renewable, and so the supply tends to be unlimited, allowing for steady economic growth but only if other resources grow proportionately.
• D) The ability to invest in natural resources and use advanced technology will lead to ever-increasing productivity.

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Definitions:

U.S. Troops

Military personnel and soldiers of the United States, often engaged in national defense and international peacekeeping missions.

Foreign Capital

Investment of money from countries outside the recipient country, typically involved in international trade, investment, and financial markets, which can influence economic development.

Mexican War

Controversial war with Mexico for control of California and New Mexico, 1846–1848; the Treaty of Guadalupe Hidalgo fixed the border at the Rio Grande and extended the United States to the Pacific coast, annexing more than a half-million square miles of Mexican territory.

Fifty-four Forty

A historical slogan from the U.S. presidential election of 1844, expressing the goal of expanding U.S. territorial claims in the Oregon Territory up to latitude 54°40′ north.