Correct Answer: C. crude oil deposit

Explanation

Many Nigerians perceive the Niger Delta as synonymous with the oil producing areas of Nigeria. In other words, the Niger Delta includes the states of Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and Rivers. The region is blessed with abundance of human and physical resources, including the majority of Nigeria's oil and gas deposits, good agricultural lands, extensive forests, excellent fisheries, as well as with a well-developed industrial base. The Niger Delta region of Nigeria is richly endowed with natural resources with oil and gas accounting for over 85% of the Nation's gross domestic product (GDP); over 95% of the National budget; and over 80% of the national wealth.

Correct Answer: A. Last in First Out

Explanation

Last in first out:when price rise it results to lower bet income because the leftover inventory might be extremely old and perhaps obsolete

Correct Answer: D. Wages increase

Correct Answer: D. external economies

Correct Answer: D. provide a mechanism for tariff reductions

Explanation

(a) Competitive demand is the demand for commodities that can be used interchangeably. An increase in the demand for one will lead to a decrease in the demand for its substitute. Joint demand on the other hand is the demand for commodities that are used together to satisfy a want. An increase in the demand for one will lead to an increase in the demand for the other.

(b) i. From the diagram above (figure 1), an increase in the price of the complement of commodity R from P\(_{1}\) to P\(_{2}\) has resulted in a fall in quantity demanded from Q\(_{1}\) to Q\(_{}\). Demand for commodity R shifted from D\(_{1}\) to D\(_{2}\) and the equilibrium price fell from P\(_{1}\) to P\(_{2}\) and quantity from Q\(_{1}\) to Q\(_{2}\)

ii. An increase in the price of a substitute of Commodity R will result in a fall of its quantity demanded from Q\(_{1}\) to Q\(_{2}\). (in figure 3). As a result of this, demand for commodity R will increase, Shown by the demand curve shifting from D\(_{1}\)D\(_{1}\) to D\(_{2}\)D\(_{2}\) in figure 4. The equilibrium price will increase from P\(_{1}\) to P\(_{2}\) and the equilibrium quantity from Q\(_{1}\) to Q\(_{2}\).

iii. The imposition of an indirect tax on commodity R will result in a shift of the supply curve from S\(_{1}\)S\(_{1}\) to S\(_{2}\)S\(_{2}\) in figure 5. with demand unchanged, the equilibrium price will increase from P\(_{1}\) to P\(_{1}\) but the equilibrium quantity will fall from Q\(_{1}\) to Q\(_{2}\).

Correct Answer: B. low level of technology

Explanation

Factors that limit the application of division of labour are: size of market, production method/technology, nature of commodities, non-availability of capital, non -availability of required skilled labour, low level of technology etc.

Explanation

Positive effects of petroleum industry on the economy of Nigeria are:

(i) The development of basic infrastructural base for developmental purposes.

(ii) Provision of internal energy requirement, e.g. kerosene, gas.

(iii) Provision of revenue in form of petroleum tax/sales of petroleum products.

(iv) It is a source of foreign exchange.

(v) Many people have been gainfully employed in the industry.

(vi) Emergence of petroleum has led to the establishment of petrochemical industry in the country and some other allied industries such as liquified natural gas industries.

Negative effects of Petroleum industry on the economy of Nigeria are:

(i) The presence of oil and its wealth has escalated social vices such as corruption, armed robbery, etc.

(ii) Oil exploration in Nigeria has caused ecological problem like pollution.

(iii) Nigeria has become mono-economy. Other sectors like agriculture have been relegated to the background.

(iv) Another major effect is the problem of rural - urban migration.

(v) The discovery of oil led to rapid monetary expansion which has caused a high rate of inflation.

Correct Answer: D. better terms of trade in the world

Correct Answer: D. tends to decreased continuously