Test: Natural Resources and the Nigerian Economy - 2 - JAMB MCQ

The linkage effect refers to the interdependence and interconnectedness of sectors in an economy, where changes in one sector can have an impact on other sectors. It highlights how various sectors rely on each other for economic growth and development. Options A, C, and D are not accurate definitions of the linkage effect.

Backward linkage refers to the connection between a downstream sector (e.g., manufacturing) and an upstream sector (e.g., agriculture), where changes in the upstream sector can affect the downstream sector. It signifies how the performance of one sector influences the performance of the sector(s) it depends on. Options A, B, and D do not accurately describe backward linkage.

The forward linkage effect refers to the connection between a sector that provides inputs (e.g., manufacturing) and a sector that utilizes those inputs (e.g., services). It emphasizes how the performance of one sector affects the performance of the sector(s) it supports. Options A, C, and D do not accurately describe forward linkage.

The establishment of linkages between natural resources and other sectors can create employment opportunities, particularly in sectors that rely on or are connected to natural resources. It can lead to economic diversification and growth. Options A, B, and D do not accurately reflect the outcomes of establishing linkages.

This is an example of a direct linkage between natural resources (agricultural output) and another sector (food processing industries). Changes in agricultural output can directly impact the food processing industry. Options A, C, and D describe indirect or unrelated linkages between sectors.

The construction sector heavily relies on natural resources such as cement, steel, timber, and other materials. These resources are essential for building infrastructure and housing. Options A, C, and D may play a role in the construction sector but are not directly related to its primary resource requirements.

Increased demand for automobiles leads to higher production of steel, which is an example of a backward linkage. The production of automobiles depends on the availability of steel, making the steel industry an upstream sector. Options B, C, and D describe different types of linkages but not backward linkages.

The establishment of linkages between sectors promotes specialization and increases efficiency. It allows sectors to focus on their strengths and benefit from each other's resources and expertise. Options A, B, and D do not accurately describe the positive impacts of linkages on economic development.

Agriculture and farming heavily rely on natural resources such as land, water, and climate conditions. Options A, B, and C are not directly dependent on natural resources for their operations.

The establishment of linkages between sectors creates opportunities for income generation, job creation, and economic growth. This can help lift people out of poverty by providing them with employment and income-earning possibilities. Options A, C, and D do not accurately describe the poverty-reducing effects of linkages between sectors.