Economics 2007 Jamb Examination

C. the goodwill of the partners.

A. the managerial ability of the partners

While access to finance and goodwill are important factors, a partnership cannot function effectively without competent management. Good management involves making sound decisions, managing resources efficiently, resolving conflicts, and maintaining positive relationships with clients and stakeholders. If the partners lack these skills, the partnership is likely to fail, regardless of their financial resources or reputation

Goodwill ensures smooth cooperation, respect for shared responsibilities, and sustained business success. It acts as the bond holding the partners together beyond formal agreements, thereby safeguarding the continuity of the business.

A. diversify the export base of the economy.

The cassava initiative was designed to reduce overdependence on crude oil exports by boosting non-oil exports. Cassava and its derivatives have significant international demand, and expanding this sector enhances Nigeria’s foreign exchange earnings.

By diversifying the export base, the economy becomes more resilient to oil price shocks. This aligns with broader policies aimed at stimulating agriculture and encouraging value addition for export markets.

D. create a market for the industrial sector.

Agriculture provides food, income, and employment for the majority of the population in developing countries. As incomes rise in this sector, demand for manufactured goods also increases, thus creating a viable domestic market for industrial expansion.

This sequence supports balanced growth by ensuring industries have ready consumers. Without agricultural progress, industrial products would lack sufficient demand, slowing overall development.

A. a review of the tax policy.

Foreign investors are sensitive to tax regimes. Lower and more favorable tax policies encourage investment by reducing the cost of doing business. Tax holidays and incentives are commonly used to draw in multinational companies.

Improving the tax system not only attracts new investment but also sustains existing ones. This approach builds investor confidence and stimulates economic growth through capital inflows and job creation.

A. localization of industries.

When industries cluster in specific areas, pollution and environmental stress become concentrated. This leads to air, water, and land degradation due to waste disposal, emissions, and overuse of natural resources in those regions.

Localization amplifies environmental risks as multiple factories discharge pollutants into the same ecosystems. Over time, this reduces the quality of life for residents and necessitates stronger environmental regulations and urban planning.

B. stimulates the development of all sectors.

Industrialization is central to balanced growth because it creates forward and backward linkages with other sectors such as agriculture, mining, and services. By stimulating these interactions, it diversifies the economy and reduces reliance on primary production.

The process ensures a more sustainable growth path, as industries generate employment, enhance technology transfer, and increase productivity across the board. This synergy accelerates both economic development and national competitiveness.

A. exploration of crude oil.

Upstream oil operations cover exploration, drilling, and production stages before the crude oil reaches refineries. It is the first phase of the petroleum industry, where the search for reserves and extraction occurs.

This stage requires significant capital and technical expertise. By contrast, refining and marketing fall under midstream and downstream activities, making exploration and production the defining feature of the upstream sector.

D. technical progress.

Malthus predicted that population growth would outpace food supply, leading to famine and poverty. However, advances in technology, particularly in agriculture, have disproven this prediction by improving yields and ensuring better food availability.

Mechanization, improved fertilizers, irrigation, and modern farming techniques have significantly raised productivity. These innovations demonstrate that human ingenuity can overcome resource constraints that Malthus assumed were insurmountable.

C. geographical distribution of population.

Rural–urban migration shifts the concentration of people from the countryside into cities, thereby altering the geographical spread of the population. This migration results in urban growth and declining rural populations.

Such shifts affect resource allocation, infrastructure demand, and planning. Over time, it may also trigger urban challenges like congestion, unemployment, and pressure on housing, but the primary impact remains geographical redistribution.

C. supply of labour.

When retirement age is extended, workers remain in the labour force for longer periods. This increases the effective supply of labour available in the economy, as older workers delay exit while younger entrants still join.

A higher labour supply can affect employment dynamics, wage negotiations, and productivity levels. While it can enhance experience in the workforce, it may also limit new job opportunities if not matched with job creation policies.