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JAMB Economics 2014 Objective — Question 38

Question 38 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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One major factor that determines the location of an industry is

  • A. its proximity to the marketCorrect
  • B. the capital base
  • C. the social responsibility of the firm
  • D. tax exemption grant

Explanation

Proximity to the market is one of the factors considered by firms in locating industry, especially when the product is fragile, awkward in shape, or weight-gaining.

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