What is a potential consequence of resource exhaustion in a specialised region?

Study for the GCSE Economics Exam with comprehensive flashcards and multiple choice questions. Each question includes hints and detailed explanations. Prepare thoroughly for your exam!

Resource exhaustion in a specialized region can lead to significant economic challenges, particularly for workers whose livelihoods depend on those resources. When the resources that the region relies on are depleted, industries may struggle to continue operations, leading to a decline in production and profitability.

As a result, this diminished economic activity typically leads to a reduction in the demand for labor, causing unemployment among workers in those sectors. These individuals may find themselves without jobs as companies either downsize or close entirely due to a lack of necessary resources to operate.

In contrast, economic growth, job stability, or increased employment opportunities rely on the continuous availability of resources and a thriving economy. When resources are exhausted, these aspects are threatened, making unemployment the most likely outcome for those affected workers and the region as a whole.

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