Question

Sometimes an economy cannot grow because of external factors, such as

1-lack of skilled labor.
2-poor infrastructure.
3-low domestic demand.
4-low demand for exports.

Answer 1

The answer is D. I just took the test!

Answer 2

The correct answer is D.

When the demand for exports is low, it affects to the economy of a country because its producers are able to serve a smaller amount of consumers, as they only operate in national markets. In turn, lower demand means lower production levels and small GDP figures. Therefore, there is not economic growth.

The other three factors proposed do affect the growth posibilities of an economy, but all of them are internal factors.