Post Utme Covenant University 2021 Economics Question 26

Practice objective / multiple choice question 26 from the 2021 Post Utme Covenant University Economics examination.

Post Utme Covenant University 2021 Economics Objective / Multiple Choice
Question 26 POST_UTME_COVENANT_UNIVERSITY • 2021 • ECONOMICS • objective

The government of Nigeria has introduced a new policy to encourage agricultural production. The policy involves providing subsidies to farmers who produce crops that are in high demand. However, the policy also involves increa\sing the price of fertilizers to reflect their true market value. Which of the following is a likely consequence of this policy?

Answer Options

Correct Answer A. An increase in the production of crops that are in high demand
B. A decrease in the production of crops that are in high demand
C. An increase in the price of fertilizers
D. A decrease in the price of fertilizers
Correct Answer
A
Correct Option:
An increase in the production of crops that are in high demand

About This Question

This is Post Utme Covenant University 2021 Economics Question 26. It is one of the objective questions from the 2021 Post Utme Covenant University Economics examination.

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