Question

War limits economic development because of the loss of life, and the long-lasting effects of weapons and damaged property.

Question 2 options:
True
False

Answer 1

True

Step-by-step explanation:

Despite the cost of life, war has adverse effects on the economy. War disrupts the economy in the following.

1. Loss of infrastructure. In times of war, many buildings, roads, and bridges get destroyed. The loss cripples economic activities in a country.
2. High inflation. War causes inflation to rise, thereby eroding people saving.
3. Rise in national Debts. During the war, governments tend to borrow more money, partly to finance the war.
4. Opportunity cost. War is expensive. The government spends a lot of money on the military and weapons instead of development.
5. Loss of livelihoods. In times of war, many economic activities come to a halt. Imports and exports become difficult. Industries lack raw materials, while many businesses close down.