Which term contrasts with commodity dependence by describing a diversified economy?

• A. Export concentration
• B. Resource nationalism
• C. Economic vulnerability
• D. Economic diversification

Answer: (D)

The idea being tested is how an economy shifts from relying on a single or small set of commodities to broadening its activities across multiple sectors. Commodity dependence means earnings come largely from one or a few primary exports, making the economy vulnerable to price swings and demand changes. Describing a diversified economy captures the opposite scenario: growth comes from a variety of sectors such as manufacturing, services, agriculture, and tourism, which spreads risk and stabilizes income. This makes the economy less exposed to the fortunes of any one commodity. The other terms don’t fit as well: export concentration would indicate focus on a few exports (the opposite of diversification), resource nationalism is about political or policy control of resources, and economic vulnerability is about sensitivity to shocks in general rather than the specific move toward multiple sectors.