WAEC Economics 1991 (August) Question 40

Question 40

Industrialisation

Which of the following is not an argument for locating industries in rural areas?

  1. A.Rural areas supply agricultural raw materials
  2. B.The pace of development of rural areas will be quickened
  3. C.Employment will be provided for rural inhabitants
  4. D.capital is easily available in rural areas
  5. E.Rural-urban migration will decrease.
Show the answer and explanation

Answer: D (capital is easily available in rural areas)

Explanation

Capital is in fact scarce in rural areas, so this cannot be an argument for rural location.