What might indicate a lack of economic resilience?

• A. Steady growth rates
• B. Rapid recovery from natural disasters
• C. Continuing economic decline or instability
• D. High levels of foreign investment

Answer: (C)

A continuing economic decline or instability is a clear indicator of a lack of economic resilience. Economic resilience refers to the ability of an economy to withstand or recover from shocks, such as financial crises, natural disasters, or other disruptive events. When an economy is in a state of continuous decline or instability, it demonstrates vulnerabilities and suggests that it is unable to bounce back from challenges effectively. This situation often leads to prolonged periods of unemployment, lower productivity, and diminished economic opportunities for individuals and businesses.

In contrast, steady growth rates, rapid recovery from natural disasters, and high levels of foreign investment are positive signs of economic strength and resilience. Steady growth suggests stability and prosperity, rapid recovery showcases the ability to rebound after setbacks, and high levels of foreign investment typically reflect confidence in the economy's future. All these factors would indicate a robust, resilient economic environment rather than one that is struggling or in decline.