one benefit a country can derive from the extraction of crude oil is increase in?

Analyze the question The question asks for a benefit a country gains from extracting crude oil. We need the option that is a positive economic outcome directly linked to oil extraction.

Explain the concept Extracting crude oil is an economic activity in the primary and secondary sectors. It requires workers such as engineers, drillers, technicians, security staff, transporters, and caterers. It also creates indirect jobs in supporting industries like construction, haulage, and services. So its main benefit is job creation (increased employment), which raises incomes and living standards.

Step-by-step evaluation of the options

• A. Population: Population growth is not a benefit created by oil extraction. A larger population could even put pressure on resources and services, so this is not a typical economic benefit.
• B. Employment: Oil companies and their supporting industries hire many people. More jobs mean more income and a lower unemployment rate. This is a clear benefit.
• C. Money: This is vague. Oil earns foreign exchange and revenue, but "money" in the sense of money supply is not the standard benefit. In economics, an increase in the money supply without more output can cause inflation, so it is not the best answer.
• D. Demand for imports: Higher demand for imports is not a benefit. It can worsen the balance of payments.

Answer The best answer is B. Employment.

Exam tip When a WASSCE Economics question asks for the "benefit" of an industry, think first of employment, income, foreign exchange, and government revenue. Eliminate options that are neutral or negative, such as population growth or higher import demand.