Post Utme Afe Babalola University 2025 Economics Question 4

Practice objective / multiple choice question 4 from the 2025 Post Utme Afe Babalola University Economics examination.

Post Utme Afe Babalola University 2025 Economics Objective / Multiple Choice
Question 4 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2025 • ECONOMICS • objective

A farmer in Nigeria has 100 hectares of land to cultivate maize. The marginal product of labor is 10 units of maize per hour of labor, and the wage rate is ₦100 per hour. U\sing the concept of scarcity and choice, explain why the farmer may choose to hire labor to cultivate the land.

Answer Options

Correct Answer A. The farmer may choose to hire labor because the marginal product of labor is greater than the wage rate.
B. The farmer may choose to hire labor because the wage rate is greater than the marginal product of labor.
C. The farmer may choose to hire labor because the land is too large to cultivate alone.
D. The farmer may choose to hire labor because the farmer is too old to cultivate the land alone.
Correct Answer
A
Correct Option:
The farmer may choose to hire labor because the marginal product of labor is greater than the wage rate.

About This Question

This is Post Utme Afe Babalola University 2025 Economics Question 4. It is one of the objective questions from the 2025 Post Utme Afe Babalola University Economics examination.

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