JAMB 2022 Economics · Question 75

Which of the following industries will add more value to primary products?

Options

  1. A.Service industry
  2. B.Construction industry
  3. C.Mining industry
  4. D.Processing industry

Answer: D. Processing industry

Explanation written with AI and checked against the answer key

1. Analyze the question The question asks which industry adds more value to primary products. Primary products are raw materials taken directly from nature, such as crude oil, cocoa beans, cotton, timber, and iron ore.

2. Explain the concept Industries are grouped by what they do:

  • Primary industries extract or harvest raw materials (farming, fishing, mining, forestry).
  • Secondary industries turn raw materials into finished or semi-finished goods (manufacturing, processing, construction).
  • Tertiary industries provide services (banking, transport, teaching).

"Adding value" means making a raw material more useful and more valuable by transforming it. For example, cocoa beans become chocolate and cocoa butter, cotton becomes fabric, and crude oil becomes petrol, diesel and kerosene.

3. Solution: check each option

  • A. Service industry: It provides intangible services and does not transform raw materials.
  • B. Construction industry: It builds structures. It uses materials but is not mainly about upgrading primary products.
  • C. Mining industry: It is itself a primary industry. It extracts the raw material and does not add value to it.
  • D. Processing industry: It converts raw materials into refined or finished goods, which raises their value. This is the correct choice.

4. Answer The correct option is D. Processing industry.

5. Exam tip Link the keywords: "add value to primary products" means processing or manufacturing. Nigeria exports crude oil and cocoa as raw materials and earns less than it would from refined or processed goods, which is why economists push for local processing (value addition).

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