Question

The table below compares the economies of two countries.

Country A Country B
Main crop is wheat Main crops are wheat, corn, and potatoes
Primary product is flour Produces a variety of products including flour, processed foods, and bio-fuels


Which statement is accurate based on the information in the table?
Country A's economy is more diversified than country B's economy
Country B's economy is more diversified than country A's economy
The economies of both countries are equal in level of diversification
The economies of both countries can be described as single resource

Answer 1

A area or nation's usage of a wide variety of economic activities or differences in its economic status are referred to as economic diversity or economic diversification. Hence option B is correct .

What is diversified Economy ?

Diversification is a tactic used to promote healthy economic development and growth.

A corporation that uses diversification as a business strategy expands rather than specialises by entering a market or field that is unrelated to its core industry. Some business executives think cash should be distributed so as to limit exposure to any one specific asset or risk. Others, however, contend that in the current economic climate, specialisation is the only viable strategy.

Diversification has historically been attempted to lower the risk of relying on just one or a few income sources - not putting all your eggs in one basket.

Commercial organisations can avoid seasonal or cyclical variations by diversifying their product lines or service offerings to meet a range of demand cycles. It can occasionally lead to rapid growth.

Answer 2

Answer:The statement that is accurate based on the information in the table is that Country B's economy is more diversified than Country A's economy.

Explanation:The table shows that Country A's main crop is wheat and its primary product is flour. In contrast, Country B produces a variety of products including flour, processed foods, and bio-fuels and has main crops that are wheat, corn, and potatoes. This suggests that Country B has a more diversified economy than Country A.