15 MCQ on Resource Endowment and the Impact on Social and Economic formations with answers
15 MCQ on Resource Endowment and the Impact on Social and Economic formations with answers
1. Which of the following is NOT considered a natural resource?
a) Oil
b) Gold
c) Knowledge
d) Timber
Answer: c) Knowledge
2. The resource curse refers to:
a) A country's abundant natural resources leading to economic prosperity
b) The negative consequences of resource abundance on a country's development
c) Efficient management of natural resources for sustainable development
d) The equitable distribution of wealth derived from natural resources
Answer: b) The negative consequences of resource abundance on a country's development
3. Which of the following countries is often cited as an example of the resource curse?
a) Norway
b) Canada
c) Nigeria
d) Switzerland
Answer: c) Nigeria
4. The Dutch Disease phenomenon is characterized by:
a) A booming manufacturing sector due to resource exports
b) Economic decline in non-resource sectors due to resource exports
c) Stagnant economic growth despite resource exports
d) Balanced economic development alongside resource exports
Answer: b) Economic decline in non-resource sectors due to resource exports
5. Which economic concept refers to the measure of a country's total economic output adjusted for its population size?
a) Gross Domestic Product (GDP)
b) Gross National Income (GNI)
c) Human Development Index (HDI)
d) Purchasing Power Parity (PPP)
Answer: c) Human Development Index (HDI)
6. The concept of "resource curse" is closely related to:
a) Economic diversification
b) Sustainable development
c) Conflict and instability
d) Technological innovation
Answer: c) Conflict and instability
7. Which of the following regions is known for its abundance of oil resources?
a) Sahel region
b) Persian Gulf
c) Amazon rainforest
d) Great Barrier Reef
Answer: b) Persian Gulf
8. The resource-based view (RBV) of economics emphasizes:
a) The importance of market demand in resource allocation
b) The role of natural resources in shaping economic competitiveness
c) Government intervention to redistribute wealth from resource extraction
d) The insignificance of natural resources in economic growth
Answer: b) The role of natural resources in shaping economic competitiveness
9. Which of the following sectors is often negatively impacted by resource dependency?
a) Agriculture
b) Manufacturing
c) Services
d) Mining
Answer: b) Manufacturing
10. The concept of "rent-seeking behavior" refers to:
a) Investing in renewable energy sources
b) Extracting maximum profit from natural resources without reinvesting in the economy
c) Promoting social welfare programs funded by resource revenues
d) Encouraging foreign investment in resource-rich regions
Answer: b) Extracting maximum profit from natural resources without reinvesting in the economy
11. Which country has successfully managed its resource endowment to achieve economic diversification and development?
a) Venezuela
b) Saudi Arabia
c) Botswana
d) Angola
Answer: c) Botswana
12. The concept of "resource nationalism" refers to:
a) Exploiting natural resources for national development
b) Promoting international cooperation in resource management
c) Government policies aimed at increasing foreign investment in resource extraction
d) Asserting state control over natural resources within national borders
Answer: d) Asserting state control over natural resources within national borders
13. Which factor contributes to the vulnerability of resource-dependent economies to global market fluctuations?
a) Diversification of exports
b) Strong domestic market demand
c) Stable political institutions
d) Dependence on a single commodity for export revenue
Answer: d) Dependence on a single commodity for export revenue
14. The concept of "resource depletion" refers to:
a) The exhaustion of natural resources due to excessive exploitation
b) The discovery of new resource deposits
c) The equitable distribution of resource wealth among the population
d) Investing in renewable energy sources to replace finite resources
Answer: a) The exhaustion of natural resources due to excessive exploitation
15. Which of the following strategies can resource-rich countries adopt to mitigate the negative impacts of the resource curse?
a) Increasing reliance on resource exports
b) Investing in education and infrastructure
c) Privatizing natural resource extraction industries
d) Relying solely on foreign aid for economic development
Answer: b) Investing in education and infrastructure
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