Crude petroleum is a good example of a

Step 1: Analyze the question The question asks what type of asset or resource crude petroleum is. Think about what happens to crude oil when it is used.

Step 2: Explain the concept A wasting asset is a resource that is used up over time and cannot be replaced (or takes millions of years to replace). Its value and quantity fall as it is extracted and consumed. Examples include crude oil, coal, natural gas, and minerals such as tin and columbite. These are also called non-renewable resources.

Step 3: Evaluate each option

• A. Lasting asset: Wrong. A lasting asset does not get used up. Crude oil does, because the more we extract, the less remains in the ground.
• B. Wasting asset: Correct. Crude oil is finite and depletes with extraction and use, so it is a classic wasting asset.
• C. Synthetic product: Wrong. Synthetic products are man-made, such as plastics or nylon. Crude oil occurs naturally in the earth.
• D. Costless resources: Wrong. Costless (free) resources, like air or sunlight, need no effort to obtain. Crude oil requires exploration, drilling, and refining, which cost a lot of money.

Step 4: Answer Crude petroleum is a natural resource that is exhausted as it is used, so it is a wasting asset.

Exam tip: Link "wasting" with "wasting away" or "running out". Whenever you see oil, coal, gas, or minerals in a JAMB Economics question about asset types, think wasting asset / non-renewable. Compare this with renewable resources like fish, forests, and farmland, which can be replenished.