JAMB 2015 Economics · Question 30
A smaller industry that grows to cater for the need of the major industry is
Options
- A.subsidiary industry
- B.constructive industry
- C.manufacturing industry
- D.infant industry
Answer: A. subsidiary industry
Explanation written with AI and checked against the answer key
Analyze the question The question asks for the name of a smaller industry that grows up to serve the needs of a bigger (major) industry.
Explain the concept Industries are classified by their relationship to one another:
- Subsidiary (ancillary) industry: a smaller industry that supplies materials, components, or services to a major industry. For example, firms making bottles and crown corks for a brewery, or firms making spare parts and tyres for a vehicle assembly plant.
- Constructive industry: a term for industries that build things, such as building and construction. It has nothing to do with serving a major industry.
- Manufacturing industry: an industry that turns raw materials into finished goods. It describes what an industry does, not its relationship to a larger one.
- Infant industry: a new industry that is still young and often needs government protection from foreign competition until it can stand on its own. It describes the industry's age, not the role it plays.
Solution
- The key words are "smaller industry" and "cater for the need of the major industry".
- This describes a supporting, supplying role.
- Only the subsidiary industry fits that role.
- Option D (infant industry) is the usual distractor. It is about newness, not about supporting a bigger industry.
Answer: A. Subsidiary industry
Tip: "Subsidiary" means "supporting". Whenever a question says a small firm serves, supplies, or supports a bigger one, think subsidiary. Think "infant" only when the question mentions a young industry needing protection.
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