1995 - JAMB Economics Past Questions and Answers - page 2

The major reason for the survival of small shops, even when large businesses are present, is their ability to offer local services and often operate for longer hours.

• Local Services: Small shops often cater to the specific needs of their immediate communities, offering convenience and personalized service that larger businesses may not.
• Longer Hours of Operation: Small shops can provide goods and services during hours when larger businesses are closed, offering convenience to customers.

The other options are not the primary reasons:

• A: While the small capital outlay is a factor in starting a small shop, it does not ensure its survival against larger businesses.
• B: Regularity and constant supply of commodities are important but not a unique advantage for small shops, as large businesses can also achieve this.

The major advantage of public enterprises, especially in developing economies, is often their role as significant employers of labor. While public enterprises can have other benefits or drawbacks, their capacity to provide employment is a key feature, particularly in situations where private sector job creation may be limited.

The correct answer is B because:

• (i) it provides food for the growing population: Agriculture is the primary source of food.
• (ii) A large proportion of the population is engaged in agriculture: A significant percentage of the Nigerian population is involved in agricultural activities, whether directly or indirectly.
• (iii) Agriculture products are used as raw materials by the local industries: Many local industries in Nigeria rely on agricultural products as raw materials (e.g., cotton for textiles, cocoa for chocolate).
• (iv) It serves as sources of heavy equipment to local industries: This statement is incorrect. Agriculture does not provide heavy equipment.

The most significant reason for the agricultural sector in Nigeria losing its labor force is rural-urban migration.

• Rural-urban drift: This is the movement of people from rural areas (where agriculture is primarily located) to urban centers in search of better opportunities, higher wages, improved living conditions, and access to amenities like education and healthcare. This directly reduces the labor available for agricultural activities.
• Other options:
  • Lack of effective agricultural policy: While important, it is not the primary reason people leave.
  • Employment opportunities in the oil sector: While the oil sector may attract some labor, the scale of rural-urban migration is far greater and more directly impacts the agricultural sector.
  • Low prices of agricultural products: This can discourage people from farming, but it doesn'

The government can influence the price of agricultural products through several methods. The use of buffer stocks and stabilization funds is a common approach:

• Buffer Stock: The government buys up surplus agricultural products when prices are low (e.g., after a bumper harvest), storing them in a buffer stock. When prices rise (e.g., due to a poor harvest), the government releases the stored products to increase supply and moderate price increases.
• Stabilization Funds: These funds can be used to support prices in various ways, such as providing subsidies or loans to farmers or intervening in the market to buy or sell commodities.

Let's look at why the other options are less suitable:

• A: Fixing minimum prices when output is low could benefit farmers. However, this could make products unaffordable for

The primary factors determining the location of petroleum refineries in Nigeria, besides the availability of raw materials (crude oil), include:

• Nearness to the source of power: Refineries require a significant amount of energy to operate. Locating near a power source (e.g., electricity grid, gas supply) reduces the cost and ensures a reliable power supply.

Infant industries are new industries that are not yet mature enough to compete with established industries in the global market. They often require government protection and support (like tariffs or subsidies) to survive and grow until they can become competitive.