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You have to choose two options, and the two have to be synonymous.

The nation's robust economic performance could be ______ by the persistent flaws in its economic institutions and structure that are the result of half-finished and misguided government policies.

A. neutralized
B. concealed
C. undermined
D. impaired
E. obscured
F. outstripped

The correct answer is CD, but I think BE makes more sense: persistent flaws may hide/conceal/obscure this nation's great potential in economic performance.

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    concealed is 'hidden' or not viewable; in the same way, 'obscured' is also making things unclear. Here, they are talking about negativity. 'Undermined' is generally used for operations and performances. Likewise, 'impaired' is diminished in strength or making it weaker. Those are the perfect choices for the question! – Maulik V Aug 26 '17 at 8:17
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It is not a matter of visibility (using words like "hide/conceal/obscure"), which might apply if someone was keeping some information secret.

In the example, the robust economy is being damaged (made worse) due to the "persistent flaws". Therefore, words like undermined and impaired are more appropriate.

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