Post Utme Afe Babalola University 2018 Economics Question 1

Practice objective / multiple choice question 1 from the 2018 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2018 Economics Objective / Multiple Choice
Question 1 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2018 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase agricultural production by providing subsidies to farmers. However, this policy has been criticized for being inefficient and wasteful. What is the opportunity \cost of this policy?

Answer Options

Correct Answer A. The opportunity \cost is the value of the next best alternative use of the resources.
B. The opportunity \cost is the value of the resources that could have been used for other purposes.
C. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being used for agricultural production.
D. The opportunity \cost is the value of the resources that could have been used for other purposes, but are now being wasted due to inefficiency.
Correct Answer
A
Correct Option:
The opportunity \cost is the value of the next best alternative use of the resources.

About This Question

This is Post Utme Afe Babalola University 2018 Economics Question 1. It is one of the objective questions from the 2018 Post Utme Afe Babalola University Economics examination.

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