What happens to a local economy in the short term, in an area where a valuable mineral has been discovered? What will happen once they have mined all of the minerals?

Question

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1 point
The area will experience a short-term economic boom & a downturn once all of the available resources are mined.
Tourism in the area will increase in the short term.
People in the area will have long-term job security.
The area will experience a population decrease in the short term.

Answer 1

The correct answer is: The area will experience a short-term economic boom & a downturn once all of the available resources are mined.

In the short term, the discovery of a valuable mineral typically leads to an influx of investment, job creation, and increased economic activity, resulting in a boom. However, once the minerals are depleted, the economic activity will likely decline significantly, leading to a downturn as jobs are lost and businesses may close.