The strength of a nation is often measured not only by its
economic output but by the stability, resilience, and wellbeing of its people. Economic growth stems from a
combination of natural resources, infrastructure,
governance, and, most critically, investments in human
capital. Countries that prioritize education and healthcare
lay the foundation for long-term prosperity.
A glaring truth in today’s global economy is that wealth
alone cannot secure sustainable growth. Natural resourcerich nations may enjoy short-term revenue surges, but
without strong institutions and a skilled, healthy workforce,
such progress risks becoming fragile. Education equips
individuals with the skills needed for innovation,
adaptability, and competitiveness. Healthcare, in turn,
ensures that citizens can contribute productively over the
long term, reducing absenteeism and lowering the
economic burden of disease.
For example, some resource-dependent nations have taken
steps to diversify their economies by ______________ revenue
into schools, training centers, hospitals, and public health
programs. Angola, in recent years, has made efforts to invest
in education and healthcare to reduce its dependency on oil
exports. By enhancing human capital, it aims to strengthen
productivity and attract investment in sectors beyond its
primary industries. While challenges remain, such
measures show the potential for transforming short-term
gains into lasting national strength. However, the global economic environment remains
uncertain. Trade disruptions, fluctuating commodity prices,
and geopolitical tensions can stall development plans, even
in countries with ambitious social investment strategies. A
grim example is when external shocks force governments to
cut back on essential public spending, undermining years of
progress in education and health sectors. The capacity to
withstand such shocks depends heavily on diversified
economies and robust fiscal planning.
National strength, therefore, is not built overnight. It
requires consistent policies, transparent governance, and
the vision to balance immediate economic needs with longterm development goals. By fostering a population that is
educated, healthy, and capable of innovation, nations can
ensure resilience in the face of global uncertainty.
In conclusion, economic growth flourishes when it rests on
a solid social foundation. Investments in human capital—
through education and healthcare—are not only moral
imperatives but strategic economic decisions. Whether
resource-rich or resource-poor, nations that prioritize these
areas strengthen their position in the world and secure
prosperity for future generations.

According to the passage, what is a key limitation of relying solely on natural resource wealth?

Question

The strength of a nation is often measured not only by its
economic output but by the stability, resilience, and wellbeing of its people. Economic growth stems from a
combination of natural resources, infrastructure,
governance, and, most critically, investments in human
capital. Countries that prioritize education and healthcare
lay the foundation for long-term prosperity.
A glaring truth in today’s global economy is that wealth
alone cannot secure sustainable growth. Natural resourcerich nations may enjoy short-term revenue surges, but
without strong institutions and a skilled, healthy workforce,
such progress risks becoming fragile. Education equips
individuals with the skills needed for innovation,
adaptability, and competitiveness. Healthcare, in turn,
ensures that citizens can contribute productively over the
long term, reducing absenteeism and lowering the
economic burden of disease.
For example, some resource-dependent nations have taken
steps to diversify their economies by ______________ revenue
into schools, training centers, hospitals, and public health
programs. Angola, in recent years, has made efforts to invest
in education and healthcare to reduce its dependency on oil
exports. By enhancing human capital, it aims to strengthen
productivity and attract investment in sectors beyond its
primary industries. While challenges remain, such
measures show the potential for transforming short-term
gains into lasting national strength. However, the global economic environment remains
uncertain. Trade disruptions, fluctuating commodity prices,
and geopolitical tensions can stall development plans, even
in countries with ambitious social investment strategies. A
grim example is when external shocks force governments to
cut back on essential public spending, undermining years of
progress in education and health sectors. The capacity to
withstand such shocks depends heavily on diversified
economies and robust fiscal planning.
National strength, therefore, is not built overnight. It
requires consistent policies, transparent governance, and
the vision to balance immediate economic needs with longterm development goals. By fostering a population that is
educated, healthy, and capable of innovation, nations can
ensure resilience in the face of global uncertainty.
In conclusion, economic growth flourishes when it rests on
a solid social foundation. Investments in human capital—
through education and healthcare—are not only moral
imperatives but strategic economic decisions. Whether
resource-rich or resource-poor, nations that prioritize these
areas strengthen their position in the world and secure
prosperity for future generations.

According to the passage, what is a key limitation of relying solely on natural resource wealth?

Accepted Answer

**Solution:**

1. The passage highlights that nations rich in natural resources may experience temporary boosts in revenue.

2. However, it emphasizes that without the development of strong institutions and a skilled, healthy workforce, such economic progress is vulnerable and unstable.

3. This directly supports option (c), which states that relying solely on natural resource wealth yields short-term benefits but does not foster lasting institutional or human capital strength.

4. Option (a) is incorrect as the passage does not discuss overproduction or international price hikes.

5. Options (b) and (d) are unrelated to the passage's main argument.

6. The passage promotes education and healthcare investments, so option (e) (not provided here) would contradict the passage.

**Answer:** (c) It provides short-term gains but fails to build institutional and human capital strength.

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