Jeremy asked Ahmad,an international student from Saudi Arabia,what it was like to grow up in a rich country with the largest crude oil reserves in the world.Ahmad explained that his fellow citizens were being impoverished-their per capita income was almost $30,000 in the early 1980s and was currently less than $7,000.Which of the following would explain this phenomenon?

Question

Quizplus · Accepted Answer

The phenomenon could be explained by the resource curse, which occurs when a country becomes overly dependent on a single resource, such as oil, and neglects other sectors of the economy. This can lead to a lack of diversification, and when the resource prices decline, the economy suffers.

Jeremy Asked Ahmad,an International Student from Saudi Arabia,what It Was