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JAMB Economics 2014 Objective — Question 37

Question 37 of 50 from the Joint Admissions and Matriculation Board (JAMB) Economics 2014 Objective paper, with the correct answer and a full explanation.

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A major disadvantage of localization of industry is the

  • A. over-utilization of installed industrial capacity
  • B. risk of seasonal unemployment
  • C. under-utilization of installed industrial capacity
  • D. risk of structural unemploymentCorrect

Explanation

Structural unemployment can result from localization of industry. Whenever the structure of the economy changes against the concentration of firms in an area, many workers lose their jobs.

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