NECO 2004 Economics · Question 31
The following are the main problems of distribution of essential commodities in Nigeria EXCEPT
Options
- A.excessive demand
- B.hoarding of goods
- C.long chain of distribution
- D.poor storage facilities
- E.poor transportation network
Answer: A. excessive demand
Explanation written with AI and checked against the answer key
Analyze the question: We are asked for the option that is NOT a problem of distribution of essential commodities in Nigeria. Distribution problems are about how goods move from producers to consumers.
Concept: Distribution is the process of moving goods from producers to final consumers through channels such as wholesalers and retailers. Problems that disrupt this process include:
- Hoarding of goods: Traders hold back stock to create artificial scarcity and raise prices, which disrupts supply to consumers.
- Long chain of distribution: Many middlemen each add their own profit margin, which raises prices and causes delays.
- Poor storage facilities: Goods, especially perishables, spoil before they reach consumers.
- Poor transportation network: Bad roads and inadequate transport delay or prevent delivery of goods.
Excessive demand: This is a market condition on the demand side. It describes how many people want to buy a good. It is not a problem of moving goods through the distribution channel. It can result from scarcity caused by distribution problems, but it is not itself a distribution problem.
Step by step:
- Check B: hoarding obstructs distribution, so it is a distribution problem.
- Check C: a long chain raises costs and causes delays, so it is a distribution problem.
- Check D: poor storage causes spoilage and losses, so it is a distribution problem.
- Check E: poor transport hinders delivery, so it is a distribution problem.
- Check A: excessive demand is a demand-side issue, not a distribution problem.
So the odd one out is A. excessive demand.
Tip: In "EXCEPT" questions, first sort the options into two groups: those that fit the topic (here, the movement and handling of goods: storage, transport, middlemen, hoarding) and the one that does not. Words like storage, transport, middlemen signal distribution problems, while demand belongs to a different area.
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