Question

Which is a disadvantage of having a single-resource economy rather than a diversified economy?

O The economy will not be able to support its citizens.
The economy will require citizens to pay higher taxes.
The economy will weaken if its resource loses value.
The economy can end up growing too fast, too quickly.
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Answer 1

A disadvantage of having a single-resource economy rather than a diversified economy is that the economy can weaken if its resource loses value.

Step-by-step explanation:

A disadvantage of having a single-resource economy rather than a diversified economy is that the economy can weaken if its resource loses value.

When an economy relies heavily on a single resource, such as oil or minerals, a drop in the demand or price of that resource can have a significant negative impact on the economy. This can lead to job losses, reduced government revenue, and overall economic decline.