Question

question 12

which of the following statements about the panama canal is correct?

• the canal generates a third of the countrys economy.
• the canal has no historical importance to the country.
• the canal generates little revenue to panamas economy.
• the canal is not a tourist attraction.

Explanation:

Analyze the economic impact of the Panama Canal

The Panama Canal is a vital international shipping route that connects the Atlantic and Pacific Oceans. Economically, the tolls and services associated with the canal are a massive driver of Panama's Gross Domestic Product (GDP). It is widely documented that the canal's direct and indirect activities generate approximately one-third of Panama's total economy.

Evaluate the alternative options

• "The Canal has no historical importance to the country": This is incorrect. The canal is central to Panama's history, geopolitical identity, and its path to full sovereignty (e.g., the Torrijos-Carter Treaties).
• "The Canal generates little revenue to Panama's economy": This is incorrect. The canal generates billions of dollars in annual revenue, making it a primary source of national income.
• "The Canal is not a tourist attraction": This is incorrect. The Miraflores Locks and other visitor centers attract hundreds of thousands of international tourists annually.

Answer:

• The Canal generates a third of the country's economy. (Correct answer)
• The Canal has no historical importance to the country.
• The Canal generates little revenue to Panama's economy.
• The Canal is not a tourist attraction.