Multiple choice

Countries that depend mainly on the export of primary products for their income, are prone to

  1. Inflation

  2. Economic instability

  3. Increasing unemployment

  4. Stable economic growth
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Countries dependent on primary product exports are economically vulnerable because their income fluctuates with global commodity prices. When prices drop or demand falls, these countries face severe economic instability. They lack diversified economies to buffer such shocks, making them prone to financial crises.

Keep practicing — related questions