JAMB Economics 2010 Question 41

Question 41

Natural Resources and Petroleum

A disadvantage of Nigeria's dependence on imported petroleum products is the

  1. A.instability in the demand for the products
  2. B.dominance of multinational firms
  3. C.instability in the supply of the product
  4. D.poor maintenance of the refineries.
Show the answer and explanation

Answer: C (instability in the supply of the product)

Explanation

Imports can be delayed by shipping, foreign exchange or price problems, so supply of fuel becomes unstable and scarcities occur.