Question

In a transitioning economy, what is a downside of rapid economic growth?

a.Rapid economic growth can be difficult to regulate.
b.Rapid economic growth benefits only the wealthy.
c.Rapid economic growth usually leads to a crash.
d.Rapid economic growth may stifle cultural growth.

Answer 1

a. Rapid economic growth can be difficult to regulate.

Step-by-step explanation:

In a transitioning economy, what is a downside of rapid economic growth?

a.Rapid economic growth can be difficult to regulate.

b.Rapid economic growth benefits only the wealthy.

c.Rapid economic growth usually leads to a crash.

d.Rapid economic growth may stifle cultural growth.

With these options, the answer would be a. Rapid economic growth can be difficult to regulate. Option B is incorrect because rapid economic growth benefits the whole nation, not just the wealthy. Option C is incorrect because rapid economic growth does not usually lead to a crash but rather to an overall improved economy. Option D is incorrect because throughout the lesson there was no mention of rapid economic growth affecting cultural growth. For these reasons, I would say that the first option is correct.

(If you are doing Edge, it also said specifically in one of the videos that rapid economic growth can be difficult to regulate.)

Answer 2

c. Rapid economic growth usually leads to a crash.

Step-by-step explanation:

b. It only mentions rapid growth, not how growth is achieved, so there is not information that it only benefits the wealthy

a. regulation takes skill in most economic situations, it should not be the downside of rapid growth

d. growth often comes with globalization which may threaten cultural identiy but not stifle cultural growth. More likely there will be exchanges of cultural values and habits.

c. True. When there's rapid growth value of assets tend to rise quickly leading to speculation in the property and financial markets. Prices then rise way past reasonable level until markets overcorrect leading to defaults, seriously constrict lending and consumer spending, which in turns causes job loss. That's a crash.