JAMB Economics Past Questions & Answers - Page 161

801.

The major contribution of OPEC to the Nigerian economy is the

A.

Provision of social infrastructures

B.

Granting of subsidies on petroleum products

C.

Stabilization of oil prices

D.

Building of refineries

Correct answer is C

OPEC aims to regulate the supply of oil in order to set the price on the world market.

802.

One major factor that determines the location of an industry is

A.

Tax exemption grant

B.

Its proximity to the market

C.

The capital base

D.

The social responsibility of the firm

Correct answer is B

Factors responsible for location of Industries

Some of them are: raw material, land, water, labour, capital, power, transport, and market. For ease of convenience, we can classify the location factors into two: geographical factors and non-geographical factors.

803.

A major disadvantage of localization of industry is

A.

The risk of structural unemployment

B.

Over-utilization of installed industrial capacity

C.

The risk of seasonal unemployment

D.

Under-utilization of installed industrial capacity

Correct answer is D

Localisation of industries in a particular locality creates many social problems such as congestion, emergence of slums, accidents, strikes etc. These adversely affect the efficiency of labour and the productive ability of the industry.

804.

An advantage of large-scale farming over peasant farming is in the area of

A.

Providing research and massive employment of labour

B.

Redistributing national income to various regions of the country

C.

Encouraging the use of traditional implements

D.

Encouraging urban-rural migration

Correct answer is A

The benefit of large scale farming over peasant farming is the reduced cost of food. Consolidation and vertical coordination have not only reduced costs, but also expanded diversity of food products and solved information problems.

805.

An important role of agriculture in Nigeria's economic development is the

A.

Processing of raw materials for industries

B.

Regulation of price system

C.

Provision of infrastructure

D.

Provision of employment

Correct answer is D

The contribution of agriculture to economic growth and development lies in providing food to expanding population, increasing the demand for industrial products, providing local foreign exchange earnings for the import of capital goods, increasing social income, providing productive employment and improving welfare of farmers.