Post Utme Aaua 2017 Economics Question 6

Practice objective / multiple choice question 6 from the 2017 Post Utme Aaua Economics examination.

Post Utme Aaua 2017 Economics Objective / Multiple Choice
Question 6 POST_UTME_AAUA • 2017 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to increase agricultural production. The policy aims to increase the supply of agricultural products by providing subsidies to farmers. However, the policy has been criticized for being ineffective in achieving its goals. Which of the following is a possible reason for the ineffectiveness of the policy?

Answer Options

A. The subsidies are not sufficient to cover the \costs of production.
B. The subsidies are not targeted at the right farmers.
Correct Answer C. The subsidies are not aligned with the market demand for agricultural products.
D. The subsidies are not sustainable in the long run.
Correct Answer
C
Correct Option:
The subsidies are not aligned with the market demand for agricultural products.

About This Question

This is Post Utme Aaua 2017 Economics Question 6. It is one of the objective questions from the 2017 Post Utme Aaua Economics examination.

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