Post Utme Al Hikmah University 2022 Economics Question 31

Practice objective / multiple choice question 31 from the 2022 Post Utme Al Hikmah University Economics examination.

Post Utme Al Hikmah University 2022 Economics Objective / Multiple Choice
Question 31 POST_UTME_AL-HIKMAH_UNIVERSITY • 2022 • ECONOMICS • objective

The Nigerian government has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has been criticized for being inefficient and wasteful. Analyze the potential effects of this policy on the agricultural sector, considering the opportunity \cost of the subsidies.

Answer Options

A. The policy will lead to an increase in agricultural production and a decrease in food prices.
B. The policy will lead to a decrease in agricultural production and an increase in food prices.
C. The policy will have no significant effect on agricultural production and food prices.
Correct Answer D. The policy will lead to an increase in agricultural production, but the increase in food prices will offset the benefits.
Correct Answer
D
Correct Option:
The policy will lead to an increase in agricultural production, but the increase in food prices will offset the benefits.

About This Question

This is Post Utme Al Hikmah University 2022 Economics Question 31. It is one of the objective questions from the 2022 Post Utme Al Hikmah University Economics examination.

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