Economies based on extraction of raw materials.

• A. Trade Blocs (Africa)
• B. General System of Preferences
• C. Natural Resources Economy
• D. Value-to-Weight Ratio

Answer: (C)

Economies based on extraction of raw materials are those where the main economic activity is pulling resources from the earth—minerals, oil and gas, timber, metals—so the country’s output and export earnings come largely from natural resources. This kind of economy is often called a natural resources or resource-based economy, and it tends to be closely tied to global commodity prices and the size of the country’s resource base. Because development hinges on selling raw materials, diversification into manufacturing or services can be slow, and economic health can swing with commodity booms and busts.

The other options don’t describe this economic pattern. A trade bloc refers to a group of countries forming a preferred trading arrangement, not to what the economy itself mainly produces. The General System of Preferences is a tariff program that gives certain developing countries reduced duties, again not a description of the economy’s composition. The value-to-weight ratio is a logistics concept used to compare shipping value relative to weight, not an economic structure.