Political instability hinders economic growth because it

Step 1: Analyze the question The question asks why political instability (coups, civil unrest, frequent changes of government, violence) hinders economic growth. We need the option that links instability to economic activity.

Step 2: The concept Economic growth depends on investment, production, and business expansion. Entrepreneurs and investors need a stable, predictable environment with secure property, consistent policies, and safety. When a country is politically unstable:

• Investors fear losing their capital and assets.
• Policies change often, so long-term planning becomes risky.
• Foreign investors withdraw or stay away (capital flight).
• Businesses may be destroyed or forced to close.

The result is lower investment, less output, fewer jobs, and slower growth.

Step 3: Evaluate the options

• A. Scares many people from politics: This affects political participation, not the economy directly.
• B. Prevents politicians from playing effective politics: This is a political effect, not an economic one.
• C. Discourages entrepreneurs generally: This is an economic link. Entrepreneurs lose confidence, invest less, and create fewer businesses and jobs, so growth slows.
• D. Encourages urban-rural migration: Instability may cause displacement, but this is not the main reason it hinders growth.

Step 4: Answer The correct option is C. discourage entrepreneurs generally.

Tip: In Economics questions asking how a non-economic factor affects growth, look for the option that mentions investment, entrepreneurs, or production. Stability gives investors confidence, and instability destroys it.