Post Utme Aaua 2019 Economics Question 31

Practice objective / multiple choice question 31 from the 2019 Post Utme Aaua Economics examination.

Post Utme Aaua 2019 Economics Objective / Multiple Choice
Question 31 POST_UTME_AAUA • 2019 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase the production of rice in the country. The policy includes providing subsidies to farmers, improving irrigation facilities, and increa\sing the supply of fertilizers. However, the policy has also led to an increase in the price of rice, which has affected the purcha\sing power of consumers. U\sing the concept of opportunity \cost, explain the opportunity \cost of implementing this policy.

Answer Options

A. The opportunity \cost of implementing this policy is the increase in the price of rice.
B. The opportunity \cost of implementing this policy is the decrease in the production of other crops.
C. The opportunity \cost of implementing this policy is the increase in the \cost of production.
Correct Answer D. The opportunity \cost of implementing this policy is the decrease in the purcha\sing power of consumers.
Correct Answer
D
Correct Option:
The opportunity \cost of implementing this policy is the decrease in the purcha\sing power of consumers.

About This Question

This is Post Utme Aaua 2019 Economics Question 31. It is one of the objective questions from the 2019 Post Utme Aaua Economics examination.

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