About 30% of Nigeria's labour force is employed in agriculture but the country still spends more than US$12 billion a year importing food. The Nigerian Government is seeking to reduce the imports of food. With a high birth rate and many small farms, this may be difficult to achieve.
- (a)Define 'birth rate'.[2]
- (b)Explain two causes of a high birth rate.[4]
- (c)Analyse how an increase in the size of farms may affect the cost of producing food.[6]
- (d)Discuss whether a reduction in its imports will always benefit an economy.[8]
Mark scheme
Marking points from the official mark scheme (May/June 2015). The mark or mark type is shown in brackets.
- [2] the number of births per 1,000 of the country's population per year
- [1] the number of births per 1,000 of the country's population
- [1] a high infant mortality rate
- [1] people having a high number of children not expecting all of them to live
- [1] a lack of financial support for the elderly
- [1] people having children to support them in old age
- [1] women marrying at a young age
- [1] giving them longer time in which to have children
- [1] a young population
- [1] with a high proportion of people of child bearing age
- [1] a lack of availability/willingness to use contraception
- [1] resulting in more births than planned
- [1] not many women working
- [1] not restricting the number of children they have in order to follow a career
- [1] a lack of education
- [1] reduces knowledge of contraception/cost of bringing up children/proportion of women working
- [1] government incentives to have children
- [1] high state benefits would increase willingness and ability of people to have children
- [1] larger farms may produce higher output
- [1] this will increase total cost
- [1] larger farms may be able to take advantage of economies of scale
- [2] examples of economies of scale available to farmers e.g. buying (purchasing seed in bulk), technical (using e.g. combine harvesters), managerial (specialist workers e.g. shepherds) up to
- [1] will lower average costs
- [1] larger farms may experience diseconomies of scale
- [1] examples e.g. worse labour relations
- [1] will increase average costs
- [1] larger farms are likely to have higher fixed and variable costs
- [1] but their average fixed costs are likely to be lower
- [1] as these costs will be spread over a higher output
- [1] their average variable costs may be lower due to economies of scale/or higher due to diseconomies of scale
- [1] a reduction in imports may improve the trade in goods/trade in goods and services balance
- [1] this will improve the current account position/reduce a current account deficit
- [1] this may reduce a country's debts
- [1] avoid downward pressure on the exchange rate
- [1] spending on imports may be replaced by spending on domestically produced products
- [1] this would increase the country's output/cause economic growth
- [1] this would increase demand for labour
- [1] raise employment/reduce unemployment
- [1] increase incomes and living standards
- [1] fewer imports may enable infant industries to grow
- [1] may protect declining strategic industries
- [1] may prevent dumping
- [1] explanation of what is meant by dumping
- [1] imports of capital goods/raw materials may decline
- [1] these might be cheaper/lower quality than domestically produced capital goods and/or raw materials
- [1] this will raise costs of production
- [1] make the country's products less internationally competitive
- [1] lower output/reduce economic growth
- [1] worsen the current account position
- [1] raise unemployment
- [1] fewer imports may reduce choice
- [1] reduce competition
- [1] may raise prices
- [1] lower quality of people's lives
- [1] exports may be falling by more than imports
- [1] so current account position may be worsening
- [1] quantity of imports may be falling but value of imports may be rising
- [1] if the reduction is caused by protectionist measures
- [1] this would reduce benefits of free trade
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