Question

Suppose that the hypothetical country of Kernaland suffers from chronic scarcity of its staple grain, corn. True or False: The country of Kernaland must be a developing country, since scarcity is not a problem in developed countries.

Answer 1

Answer:

False, Not necessarily

Explanation:

• According to the question,Kerneland suffers from a chronic scarcity of its staple grain, and corns which are agricultural products don't mean that a country is not self-sufficient in itself.

• Since Kernaland faces this scarcity it can import the same products from other countries to get rid of this problem which maintaining a balance of trade it can export what it specializes with.

• Developed countries have had similar problems of food scarcity in the earlier periods, but have overcome this. Blaming developing countries from the lack of food supplies is not a good way of understanding the economy, as many nations that are now developed or food sufficient had to import more of agricultural produce example is landlocked countries.