Post Utme Abu 2024 Economics Question 23

Practice objective / multiple choice question 23 from the 2024 Post Utme Abu Economics examination.

Post Utme Abu 2024 Economics Objective / Multiple Choice
Question 23 POST_UTME_ABU • 2024 • ECONOMICS • objective

A government is considering a policy to increase the minimum wage for all workers. The policy is expected to increase the \cost of production for firms, which may lead to job losses. However, the policy is also expected to increase the purcha\sing power of workers, which may lead to increased demand for goods and services. What is the opportunity \cost of implementing this policy?

Answer Options

Correct Answer A. The opportunity \cost is the reduction in economic growth due to the increased \cost of production for firms.
B. The opportunity \cost is the increase in unemployment due to job losses.
C. The opportunity \cost is the reduction in the s\tandard of living for low-income workers.
D. The opportunity \cost is the increase in the s\tandard of living for high-income workers.
Correct Answer
A
Correct Option:
The opportunity \cost is the reduction in economic growth due to the increased \cost of production for firms.

About This Question

This is Post Utme Abu 2024 Economics Question 23. It is one of the objective questions from the 2024 Post Utme Abu Economics examination.

View More Post Utme Abu 2024 Economics Questions More Post Utme Abu Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support