Question

Nations that have only a single abundant resource face significant​ risks, even when that resource is...

Nations that have only a single abundant resource face significant​ risks, even when that resource is highly valued.

A) True

B) False

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Answer #1

This statement is true.

The nations that have only a single abundant resource face significant risks, even when the resource is highly valued. We can say this , because at present the resource is highly valued but it is not necessary that the resource will be highly valued forever.

At present , the nation doesn’t has any risk and will enjoy high profits but as the time is progressing, people are being able to find alternative options for everything and are trying not be totally dependent on one resource. Due to this, there is a possibility that people find a cheap alternative for this resource and may not require this resource in the future. For example, as the prices of petrol and oil are increasing, they are slowly being replaced by other goods. We can see this as the electric car being introduced in the market, which will replace the fuel cars in the future.

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