Question

Explain the “paradox of plenty” as it relates to the oil producing countries of South America.

Answer 1

The resource curse, also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources (like fossil fuels and certain minerals), tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources.

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Answer 2

Answer: The discovery of oil resources does not positively impact the entire country, and in fact eliminates productive activity.

Explanation:

29.  

What is “the paradox of plenty?”

 

The discovery of oil ensures financial stability for the entire nation.

 

The discovery of oil resources does not positively impact the entire country, and in fact eliminates productive activity.

Oil not only creates very few jobs, it also destroys jobs in other sectors and eliminates other productive activity

 

The discovery of oil resources helps alleviate poverty and creates jobs.

 

The discovery of oil resources helps developing countries achieve more freedom and democracy.

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