Economics · International Economics
Assertion (A): A large natural resource export boom can lead to de-industrialisation in the non-resource tradeable sector of an economy — the so-called 'Dutch Disease'. Reason (R): Resource exports cause currency appreciation and factor reallocation toward the resource sector, raising costs and reducing competitiveness of manufactured exports.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Both A and R are true and R is the correct explanation of A✓
- 2Both A and R are true but R is not the correct explanation of A
- 3A is true but R is false
- 4A is false but R is true
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Both A and R are true and R is the correct explanation of A
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