Generally speaking,a country would be more prone to asymmetric shocks
A)the more diversified and less trade-dependent its economy is.
B)the less diversified and more trade-dependent its economy is.
C)the less diversified and less trade-dependent its economy is.
D)the more diversified and more trade-dependent its economy is.

Question

Quizplus · Accepted Answer

Asymmetric shocks refer to unexpected events that affect one part of the economy more severely than others. A less diversified and more trade-dependent economy is more prone to asymmetric shocks because it relies heavily on a few sectors or trading partners. If one of these sectors or partners experiences a shock, it can have a significant impact on the entire economy. In contrast, a more diversified economy is less vulnerable to such shocks because it has a range of sectors that can potentially offset any negative effects of a shock, and it is less reliant on any one trading partner.

Generally Speaking,a Country Would Be More Prone to Asymmetric Shocks