Question

(09.04, 09.06 MC)

The economies of most European countries have slid into a recession. Unemployment is high, and consumer spending is down. Which of the following countries is likely to be LEAST affected by Europe's woes? (4 points)

Country E's young people migrate to Italy to work and send money home each month.
Country A relies on food and cash aid from the European Union to feed its people during famines.
Country D grows flowers and flies them overnight to markets in France. Country B has created a slow-growing self-sufficient economy in the past decade.
Country C manufactures clothing for export to developed countries.

Answer 1

Answer: Country B has created a slow-growing self-sufficient economy in the past decade.

Step-by-step explanation:

Recessions are periods of a downturn in Economic activity and as already mentioned lead to high unemployment and a reduction in consumer spending.

As Europe is suffering through a recession, any country that has linked its Economy to that of Europe will suffer as well. Countries E, A, D and C rely on patronage from European countries and so if consumer spending reduces in Europe as it has, the effect would be a reduction in patronage from Europe so these countries will see their economies suffer.

Country B will not be affected as they have built a self-sustaining economy which is called an Autarky. As a result, economic events outside their country will not affect them.