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JAMB Economics 1992 Question 8

Question 8

Labour Market

The migration of young people from rural to urban areas in Nigeria should help to raise the

  1. A.standard of living in the urban areas
  2. B.total productivity of labour in the rural areas
  3. C.marginal productivity of labour in the rural areas
  4. D.marginal productivity of labour in the urban areas
Show the answer and explanation

Answer: C (marginal productivity of labour in the rural areas)

Explanation

When surplus workers leave the overcrowded farms, each remaining worker has more land to work with, so the marginal product of rural labour rises; in the towns extra workers lower it.