Which type of economy best describes Nigeria?

• A. Developed economy
• B. Developing economy
• C. Emerging economy
• D. Undeveloped economy

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the definitions of the different types of economies. A developed economy has high income per capita, advanced technological infrastructure, and high standards of living. A developing economy is in the process of industrialization and improving living standards but still faces significant challenges. An emerging economy is a subset of developing economies that are rapidly growing and industrializing, showing potential to become developed economies. An undeveloped economy has very low income, limited industrialization, and poor infrastructure.
2. Step 2: Research key economic indicators for Nigeria, such as GDP per capita, industrial growth rate, infrastructure development, and social indicators like education and health.
3. Step 3: Compare Nigeria's economic indicators with the characteristics of each economy type. Note that Nigeria has significant natural resources, growing industrial sectors, and increasing integration into the global economy, which are typical features of an emerging economy.
4. Step 4: Recognize that Nigeria is classified as an emerging economy because it is transitioning from a developing status with rapid growth and increasing economic complexity, but it has not yet reached the full development level of a developed economy.
5. Step 5: Conclude that among the options given, 'Emerging economy' best describes Nigeria based on its current economic status and growth trajectory.