NECO 2004 Economics · Question 32

Which of the following is NOT a factor to be considered in siting an industry in a particular area?

Options

  1. A.access to raw material
  2. B.availability of recreational facilities
  3. C.market
  4. D.sources of power
  5. E.transport facilities

Answer: B. availability of recreational facilities

Explanation written with AI and checked against the answer key

Analyze the question: We're asked which option is NOT a factor in deciding where to locate (site) an industry. This is the economics topic of localization/location of industry.

Concept: Firms choose a location to minimize costs and maximize profit. The main factors are:

  • Raw materials: especially for weight-losing materials (e.g., cement near limestone, palm oil mills near palm plantations)
  • Market: closeness to customers, especially for perishable or bulky products (e.g., bakeries, bottled water)
  • Power supply: electricity, gas, or coal
  • Transport facilities: roads, rail, ports for moving inputs and finished goods
  • Labour, capital, government policy, climate, land cost, and water supply

Step-by-step check of the options:

  • A. Access to raw material: a primary factor, so it is considered.
  • B. Availability of recreational facilities: these are social amenities for leisure. They might make an area pleasant to live in, but they do not affect production costs or sales, so they are not a major consideration in siting an industry.
  • C. Market: a key factor, so it is considered.
  • D. Sources of power: essential for running machines, so it is considered.
  • E. Transport facilities: essential for moving goods and materials, so it is considered.

Answer: The option that is NOT a main factor is B. availability of recreational facilities.

Exam tip: In "which is NOT a factor" questions on industrial location, look for the option about leisure or entertainment. Location factors are tied to production costs and sales: raw materials, market, power, transport, labour, capital, and government policy. Remember "RAMPT-L" (Raw materials, Market, Power, Transport, Labour) to recall the main ones quickly.

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