Question

A country in South America has large reserves of copper and tin. Mining forms the pillar of its economy. A major part of its revenue is generated from exporting these resources. This country is poor in many other ways. It is a good market for large equipment, tools, supplies, and trucks. Since there are many foreign residents in this country and a wealthy upper class, it is also a market for luxury goods. This country most likely has a(n) ________ economy.

Answer 1

Answer: raw material exporting economy

Step-by-step explanation: In simple words, these refers to the economies which have huge reserves for natural resources but are poor in the other ways. Chile and democratic republic of Congo are some of many examples of this kind of economy.

Usually these forms of economies earns majority of their revenue from exporting these resources to other countries ans they lack proper technology to use them properly. Also, difference between classes is huge in such economies.

Thus, from the above we can conclude that the country in the given case is raw material exporting economy.