JAMB 2022 Economics · Question 60
A positive effect of a rapid population increase is
Options
- A.an excessive budget deficit
- B.a reduction in standard of living
- C.a wider market for goods and services
- D.a higher dependency ratio
Answer: C. a wider market for goods and services
Explanation written with AI and checked against the answer key
1. Analyze the question The question asks for a positive effect of rapid population growth. So we must eliminate the options that describe problems or negative consequences.
2. Explain the concept Rapid population growth has both advantages and disadvantages.
Advantages:
- Larger labour force
- Bigger market size (more consumers)
- Greater potential for economies of scale and investment
Disadvantages:
- Strain on social amenities (health, education, housing)
- Higher dependency ratio
- Lower per capita income and living standards
- Pressure on government spending
3. Step-by-step solution
- A. An excessive budget deficit: Negative. A larger population forces the government to spend more on services, which can widen the deficit.
- B. A reduction in standard of living: Negative. If output does not grow as fast as the population, per capita income falls.
- C. A wider market for goods and services: Positive. More people means more consumers and higher demand. This encourages producers to expand and enjoy economies of scale.
- D. A higher dependency ratio: Negative. A larger share of the population is young or old and not working, so fewer workers support more dependants.
4. Answer The only positive effect is C. a wider market for goods and services.
5. Exam tip When a question asks for a "positive effect" or "advantage" of population growth, think labour force and market size. When you see words like deficit, reduction, dependency, strain, or pressure, they usually signal negative effects. Cross out those options first.
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